Port of Los Angeles Enters Sustainability Bond Market
Californian Port of Los Angeles has issued USD 35.2 million in green bonds as part of a larger debt refinancing completed this week, marking the first time a US port has entered the sustainability bond market.
The green bonds are part of an overall USD 201.6 million bond issue that will net the port a record present value savings of USD 32.5 million, an average of USD 1.9 million annually through 2040, the port authority said.
During the process, three credit rating agencies including Standard & Poor’s (S&P), Moody’s Investor Services and Fitch Ratings reaffirmed the port’s “AA” and “Aa2” investment rankings, the highest ratings given to a port without taxing authority.
“This bond offering and the unprecedented savings it yields speak volumes about the value of this approach,” Marla Bleavins, the port’s Deputy Executive Director and Chief Financial Officer, said.
The port’s green bonds underwent an independent review to ensure the transaction conforms to international social and sustainability principles. Sustainalytics, a sustainability research and analysis firm, performed the third-party evaluation. The firm validated the integrity of the port’s green bonds for three projects completed in recent years.
The Port of Los Angeles facilitated USD 270 billion in trade during 2015.