$400m WB Green Bond purchase announced by Standards Board member Bill Lockyer

California State Treasurer (and Climate Bond Standards Board member) Bill Lockyer today announced the State has completed a deal to buy $400 million of World Bank green bonds.

Proceeds of bonds issued under the World Bank program finance renewable energy and other, non-nuclear, projects around the globe to fight climate change. The State will get a 0.51 percent yield on the two-year bonds - roughly double this week’s rate on two-year US Treasuries.

This is Lockyer’s second deal to buy World Bank green bonds. In April 2009, the State became the first US buyer of the bonds when it made a $300 million investment.

Bill Lockyer: “These bonds are a great investment for California and its taxpayers. We’re earning an excellent return, strengthening our portfolio and backing our policies with money in the fight against global warming.”

Sole lead manager for the transaction was Sweden’s SEB.