Launch of the first American Green Bond with Vigeo’s Second Party opinion
DC Water has successfully launched on July 10th, 2014 the first “century green bond”, a bond based on sustainability criteria, over a time-frame of 100 years! An issue of USD 350 million, this first 100 year old bond launched by a municipality, with corporate responsibility objectives, and an independent second party opinion, was oversubscribed 3 times. (Coupon : 4.81%)
The funds were raised to finance the “DC Clean Rivers Project”. This project of 2.6 billion dollars will contribute to building infrastructures, especially tunnels and water pumping systems, that will transport wastewater overflows to DC Water’s Blue Plains water treatment plant.
Vigeo’s role was to provide an independent opinion on the sustainability credentials of DC Water’s Green Bond, according to the Vigeo environmental, social and governance (ESG) assessment methodology, in terms of human rights, protection of environment, business ethics, governance and societal commitment. The Vigeo opinion focuses on DC Water as an issuer, on the analysis of the project’s ESG integration and on its commitments for project fund allocation.
This first American Green Bond, with an independent second party opinion, is the 7th sustainable bond based on ESG criteria from the Vigeo methodology, after Air Liquide, the Ile de France Region, Unibail-Rodamco, EDF, Iberdrola and GDF Suez.
Green bonds, North America