The Port of Los Angeles is the first U.S. port to make a foray into the green bonds market by issuing $35.2 million in bonds to environmentally conscious investors, as part of a larger debt refinancing effort, officials said Thursday 15 September.
The green bonds — part of a $201.6 million debt refinancing — appear to be a nod to a growing appetite from investors who only want to finance projects which are sustainable or good for the environment.
Marla Bleavins, the port’s chief financial officer, told Bond Buyer that the port is hoping to “expand our investor base with the green bond issuance.”
The green bonds were issued to refinance debt incurred from building the Wilmington Waterfront Park, the Port of Los Angeles police’s LEED-certified headquarters, and the Cabrillo Shallow Water Habitat, which serves as a feeding area for birds and fish, port officials said.
To show investors the projects meet sustainability standards, each of the projects were independently reviewed by Sustainalytics, which has also done work for Apple Inc. and Starbucks Corp., port officials said.
The overall debt refinancing reduced the port’s costs by $32.5 million, or $1.9 million annually though 2040.
Source: City News Service/mynewsla.com
