This week I'm in San Francisco, speaking about the green bonds market and where it's going at events kindly convened by the California State Treasurer's Office and the California State Controller's Office.
This is the same week that the State Treasurer's Office is out in the market with the first California Green Bond (fully aligned with the Climate Bonds Taxonomy).
Then, as I arrive in Sacramento to visit the Treasurer's Office. I'm told they've just bought a $250 million World Bank green bond! They're the sole investor. This certainly is California's week.
Interest rate (paid semi-annually) is fixed at 0.65, it's tenor 2 years and it's rate Aaa/AAA. Bank of America Merrill Lynch was the manager.
That takes California’s total purchase of World Bank green bonds to a whopping $1.1bn!
State Treasurer Bill Lockyer (also a member of the Climate Bond Standards Board), said “These investments make sense for the environment and California taxpayers. The return for our pooled money account is outstanding, and we’re financing projects that help make a difference in the fight against global warming”. Exactly.
