This post was originally published on this site
California State Treasurer Fiona Ma announced the results of today’s competitively bid $545.3 million bond sale on behalf of the State Water Resources Control Board (State Water Board). Proceeds of the sale will be used for municipal clean water projects that have been approved for funding through the Clean Water State Revolving Fund (CWSRF) program. The California Infrastructure and Economic Development Bank (IBank) serves as conduit issuer of the bonds.
The State established the CWSRF program in 1989 to help local governments and other public entities finance water infrastructure projects throughout the State to help communities maintain, or come into, compliance with the Federal Clean Water Act. The CWSRF program also helps support the Governor’s Water Supply Strategy that was announced in August 2022, through financing water recycling, stormwater capture, and other major clean water projects.
The bonds are designated as “Green Bonds” due to the projects’ adherence to the standards of the Federal and State Clean Water Acts. As of December 1, 2022, the State Water Board had provided approximately $14.1 billion to 405 recipients for 948 eligible CWSRF projects.
A total of 10 bids were received from broker-dealers, with Citigroup Global Markets Inc. submitting the winning bid at a true interest cost of 3.383845 percent. The bonds will mature from October 1, 2024 to 2047, and bear interest rates ranging from 4 percent to 5 percent, with yields initially reoffered to investors ranging from 2.00 percent to 3.66 percent. The bonds are rated AAA by S&P Global Ratings, AAA by Fitch Ratings, and Aaa by Moody’s Investors Service.
The calendar of all upcoming state bond sales is available at the Treasurer’s investor relations website at BuyCaliforniaBonds.com.
