Muni issuers prep green bond deals; University of Missouri plans $150 million of long bonds

By Cristal Cody

Tupelo, Miss., Oct. 22 – Two municipal issuers announced plans to bring green bonds, which finance environmentally beneficial projects.

Although issuance of green bonds appears on the rise, it’s “not a real trend,” one market insider said on Wednesday. “Right now, people are just giving them an interesting name.”

Five municipal issuers have priced green bond deals this year to date, including the $350 million green bonds offering from Massachusetts in September.

The Metropolitan District in Hartford County, Conn., intends to offer $140 million of green bonds, according to a preliminary official statement.

The series 2014A clean water project revenue bonds (Aa2/AA/) have serial maturities from 2015 through 2037 and a term bond due Nov. 1, 2042.

J.P. Morgan Securities LLC is the bookrunner for the negotiated offering.

Proceeds from the deal will be used to permanently fund bond anticipation notes due on Dec. 5, 2014 and to finance the district’s clean water project.

Also coming up, Connecticut plans its first green bonds offering to provide funding for up to $60 million of critical wastewater infrastructure projects through the state’s clean water program.

“We are developing the new green bonds product to meet the needs of the growing group of investors who have mandates to invest in sustainable projects that will help preserve our environment for future generations,” state treasurer Denise L. Nappier said in a news release.

The green bonds offering will be included as part of a larger $300 million general obligation bond deal, according to the release.

JPMorgan is the bookrunner.

The state’s clean water program provides financing for wastewater projects.

University of Missouri ahead

In other deals coming up, the Curators of the University of Missouri joined the pipeline with a $150 million offering of taxable system facilities revenue bonds, according to a preliminary official statement.

The series 2014B bonds (Aa1/AA+/) are due Nov. 1, 2054.

BofA Merrill Lynch is the bookrunner for the negotiated offering.

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