SACRAMENTO (April 24, 2019) – The California Infrastructure and Economic Development Bank (IBank) announced today it will issue $83.9 million in Clean Water and Drinking Water State Revolving Fund Revenue Bonds. The Series 2019 Green Bonds will be delivered by IBank to the State Water Resources Control Board (State Water Board) to fund major projects that affect Californians’ access to safe and affordable drinking water.
The California State Treasurer’s office was the agent of sale of the revenue bonds on behalf of the State Water Board.
Millions of dollars have already been pledged by the Water Board to eight recipients for current or recently completed water projects including the City of Fresno and the City of Los Angeles.
The City of Fresno, in an attempt to decrease reliance on groundwater, constructed the Southeast Surface Water Treatment Facility – a water treatment facility that can manage up to 80 million gallons per day. The City also needed a 13-mile pipeline to bring water to the Southeast Surface Water Treatment Facility.
The City of Los Angeles, acting through the Department of Water & Power, has several projects including constructing a 650 million gallon per day ultraviolet disinfection facility to treat water from the Los Angeles Reservoir, removing the uncovered Silver Lake and Ivanhoe Reservoirs from service and constructing a new 54 million gallon, buried concrete Headworks West Reservoir to replace the lost capacity.
This is the fourth year IBank has issued Green bonds. Since 2016, IBank has issued just over $2 billion in green bonds. IBank Acting Executive Director Nancee Robles said the sale shows how water projects have become an urgent necessity throughout the state.
The State Water Board uses the Drinking Water State Revolving Fund (DWSRF) program as one of its main funding sources. The State Water Board’s Drinking Water Program is responsible for the regulatory oversight of about 8,000 public water systems throughout California and uses DWSRF to fund eligible infrastructure projects.
The joint senior managers on the sale were Piper Jeffrary & Co. and Morgan Stanley & Co. LLC, and the co-senior managers were Backstrom McCarley Berry & Co, LLC and George K. Baum & Company. The bonds are rated AAA by Standard & Poor’s and Fitch Ratings and Aaa by Moody’s Investors Service. The bonds have a 2035 final maturity.
IBank was created in 1994 to finance public infrastructure and private development that promote a healthy climate for jobs, contribute to a strong economy and improve the quality of life in California communities. IBank is located within the Governor’s Office of Business and Economic Development and is governed by a five-member Board of Directors. IBank has broad authority to issue tax-exempt and taxable revenue bonds, provide financing to public agencies, provide credit enhancements, acquire or lease facilities, leverage State and Federal funds and provide loan guarantees and other credit enhancements to small businesses. Find more information at www.ibank.ca.gov.