FOR IMMEDIATE RELEASE
SAN FRANCISCO/LONDON: 12 JULY 2024: Next week, the San Francisco Public Utilities Commission (SFPUC) will issue nearly $1 billion in green bonds to upgrade and increase the resilience of its wastewater and stormwater systems. The sale of two series of Climate Bonds certified Green Bonds will finance and refinance capital projects for San Francisco’s Sewer System Improvement Program (SSIP).
Approximately half of these bonds, estimated at $432 million, will be sold on a taxable basis. The taxable bonds present a significant opportunity to attract new investors and increase demand for the bonds.
The bonds will be available for sale on Wednesday, 17th July, and Thursday, 18th July.
The 2024A Wastewater Revenue Bonds, which are green and federally taxable, total approximately $432 million, and the 2024C Wastewater Revenue Bonds, which are green and tax-exempt, total approximately $548 million. The 2024A Bonds are rated 'Aa2' by Moody's and the 2024C Bonds are rated 'Aa2' by Moody's and 'AA' by S&P.
The SSIP includes projects related to wastewater treatment, sewer collection improvement, and stormwater management aimed at providing more resilient municipal infrastructure wastewater and stormwater management and treatment in the City of San Francisco's wastewater system. Projects financed by the bonds aim to address the United Nations Sustainable Development Goals including 3 (Good Health and Well-being), 6 (Clean Water and Sanitation), 7 (Affordable and Clean Energy), 9 (Industry, Innovation and Infrastructure), 11 (Sustainable Cities and Communities), 12 (Responsible Consumption and Production), 13 (Climate Action), 14 (Life Below Water), and 15 (Life on Land).
The SFPUC is a leader among US municipal issuers with over $4 billion in previously issued Climate Bonds-Certified Green Bonds. Their annual Green Bond Report for the wastewater eneterprise will include projects financed and refinanced by proceeds of the 2024A Bonds and the 2024C bonds.
"The SFPUC is committed to environmental stewardship, fiscal responsibility, and climate action,” said SFPUC General Manager Dennis Herrera. “These bonds will help us make crucial climate-resilience investments while keeping our rates competitive for our customers. Investors have the chance to support innovative approaches that benefit the environment while building a sustainable future.”
“These bonds are a tremendous opportunity, particularly for international investors, to support vital efforts to build a more sustainable and resilient water system. The SFPUC continues to lead in sustainable finance, demonstrating how municipalities can leverage the enormous power of the green bond market to finance meaningful climate action,” said Sean Kidney, CEO of the Climate Bonds Initiative.
About the San Francisco Public Utilities Commission
The San Francisco Public Utilities Commission (SFPUC) is a department of the City and County of San Francisco. It delivers drinking water to 2.7 million people in the San Francisco Bay Area, collects and treats wastewater for the City and County of San Francisco, and generates clean power for municipal buildings, residential customers, and businesses. Our mission is to provide our customers with high quality, efficient and reliable water, power, and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care. Learn more at www.sfwater.org.
About Climate Bonds Initiative
The Climate Bonds Initiative is a non-profit organisation focused on promoting large-scale investment in the low-carbon economy. Visit our website: www.climatebonds.net.
About Climate Bonds Standard
It is an overarching science-based, multi-sector standard overseen by the Climate Bonds Standards Board that allows investors and intermediaries to easily assess the climate credentials and environmental integrity of bonds and other green debt products. Launched in 2011, with periodic updates, the Climate Bonds Standard is the most detailed, climate aligned investment criteria available in the market and provides guidance to issuers, investors, governments and regulators.
