Our Environmental Journey
2014: Innovative Green Bond Transactions
Goldman Sachs Led Innovative Green Bond Transactions
Goldman Sachs continues to lead and participate in innovative green bond transactions to drive growth in the green bond market. In 2014, we led green bond transactions that catalyzed new fixed-income structures to finance projects that benefit the environment.
In 2014, Goldman Sachs acted as lead bookrunner on the DC Water and Sewer Authority’s $350 million green bond offering. The capital raised is funding new infrastructure to address combined sewer overflow issues, helping to improve water quality, reduce flood, and restore the District of Columbia’s waterways. This was the first green bond with a 100-year maturity, which matched the life of the asset and spread financing costs across generations that will benefit from the project. It was also the first U.S. issuer to carry an independent opinion of the sustainability of the issuer and the project.
Hawaii Green Energy Market Securitization
In 2014, Goldman Sachs acted as lead bookrunner on a $150 million offering of taxable green energy market securitization bonds for the State of Hawaii’s Department of Business, Economic Development and Tourism. The bond proceeds enable affordable loans to help low-income homeowners, renters and nonprofits access renewable energy and energy efficiency. This was the first utility fee securitization to provide low-cost capital for the underserved market to procure solar and other clean energy solutions. Financial products such as these are part of the portfolio of financial mechanisms to help Hawaii achieve its ambitious clean energy target of 100 percent by 2045.
In December 2014, Goldman Sachs acted as joint lead bookrunner on a $204 million, 20-year issuance for Energía Eólica, a Peruvian wind farm operator. This was the first green project bond issued in Latin America, demonstrating that green bonds can be viable financing vehicles for issuers to raise project specific debt in emerging markets.
In 2014, we served as joint lead manager on the World Bank’s issuance of $550 million floating rate green bonds. This transaction was the first syndicated green floating rate note from the World Bank and wider supranational and sovereign issuer base, demonstrating the use of new funding instruments within this market. Proceeds from the offering supported lending for projects that promote the transition to low-carbon and climate-resilient growth in recipient countries.