City of Saint Paul's AAA Sewer Bonds Certified ‘Green’
The city continues to be a leader in its commitment to resiliency and protecting the environment
SAINT PAUL, MN – For the first time in city history, Saint Paul’s sewer bonds have been formally verified as “green bonds.” The city will issue these Sewer Revenue Bonds, Series 2023E (Green Bonds) with the independent second party opinion provided by Baker Tilly US, LLP.
The “green bond” designation provides investors with a verification that the city’s financing of major sewer repairs, stormwater quality improvements, tunnel rehabilitation, and sewer rehabilitation aligns with the International Capital Markets Association Green Bond Principles and the United Nation’s Sustainable Development Goals. The designation also provides investors with an opportunity to purchase bonds funding environmentally-oriented infrastructure improvement projects. As part of this issuance, the city implemented a Green Bond Framework that it will use to guide future green bond funding opportunities.
“Sustainability and green practices are core tenets of our economic development strategy,” said Mayor Melvin Carter. “These bonds being certified as ‘green’ is a testament to our ongoing commitment to the environment. We are hopeful this designation will attract more interested investors.”
The city recently launched its Climate Action Dashboard, which gives residents and investors access to information regarding green bonds and insight into the benefits of other ongoing city projects.
Saint Paul is committed to addressing climate change impacts in the community in an equitable and inclusive manner. Adopted in December 2019, the Climate Action & Resilience Plan guides the city’s work to achieve carbon neutrality in city operations by 2030 and citywide by 2050.
The city provides annual updates related to its “green bonds” on its Saint Paul Investor Relations website.
About the “Green Bonds” Designation
Since 2015, the city has annually issued bonds self-designated as green to complete sewer improvements, but this is the first time they have been formally designated by an outside party. Designating bonds as “green bonds” is just one of the many city initiatives supporting community resiliency.
Saint Paul was the first Minnesota municipal issuer to offer green bonds, and one of the first cities in the United States to issue green bonds with a par amount under $10 million.
About the Saint Paul Office of Financial Services, Treasury Division
The Saint Paul Office of Financial Services, Treasury Division manages all city financing needs. The city maintains an “AAA” rating for its sewer revenue bonds from S&P Global Ratings (“S&P”) and an “AAA” rating for its outstanding general obligation bonds from S&P and Fitch Ratings.