DC Water 100-year green bond explained

Author: Zoe Thomas | Published: 1 Aug 2014
Design for DC Water and Sewer, combine overflow system
The issuance of DC Water and Sewer Authority's 100 year maturity green bond has signaled the market’s increasing appetite for green risk.

The $350 million bond was issued on July 10. The proceeds will go to the construction of a new waste water overflow system which is expected to last for almost 100 years.

It is the first green bond to achieve such a long tenure. Unlike other green bonds, the DC Water issuance had the added guarantee of being issued by a municipal agency with a high credit rating.

Extending the payments over such a long period of time allows the bonds to more closely match the life of the project and reduce the cost for the tax payers, who will fund the repayments.

"If a utility issues 30-year bonds, the...



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