Award from Environmental Finance recognizes the agency’s innovative Green Bond listing on the London Stock Exchange, a first for US municipal green bonds

San Francisco, CA – The San Francisco Public Utilities Commission has received a prestigious international finance award for the agency’s innovative Green Bond program.

Today, Environmental Finance—a news and analysis service based in London that specializes in sustainable investment reporting—announced the SFPUC as the winner of its 2021 Bonds Award in the category of Green Bond of the Year – US Muni Bond. The SFPUC was chosen by a panel of 50 independent judges who weighed the merits of a pool of global entries.

“This award is another testament to the SFPUC’s standing as an international leader in environmentally-sustainable financing,” said SFPUC Acting General Manager Michael Carlin. “Our green bonds are now marketed across the globe, allowing for increased investment in infrastructure projects that will have profound positive impacts on the environment. We are leading the way on how to plan responsibly for the future.”

The SFPUC received the award on the basis of its historic October 2020 issuance of a $342 million taxable green bond which was listed on the London Stock Exchange, a first for a US municipal green bond.

“It’s a great honor to be recognized by Environmental Finance with the Green US Muni Bond of the Year award,” said SFPUC Chief Financial Officer Eric Sandler. “As a leading issuer in the US green bond market, listing in Europe has been important to the SFPUC’s strategy to access new impact investors as well as provide greater liquidity to the market.”

The offering by the SFPUC represented the latest series of the agency’s Green Bonds, an innovative program which dedicates proceeds to fund environmentally beneficial projects like clean water, renewable energy, and other initiatives that mitigate and adapt to the risks of climate change.

“Offshore listing is another step in the development of the US green municipal market and the SFPUC is again leading the way,” said Justine Leigh-Bell, deputy CEO of the Climate Bonds Initiative, an international nonprofit organization aimed at mobilizing the market to invest in climate change solutions. “Climate impacts and clean water supply are interlinked. We can expect to see more municipal green issuers focused on addressing these twin challenges.”

Along with the SFPUC, the bond offering was managed by Goldman Sachs, Bank of America Securities, Morgan Stanley, Siebert Williams Shank and Company, and SMBC Nikko Securities America.

"The SFPUC is a leader in prioritizing environmental initiatives and making it a core part of their financing process and we were very pleased to serve as lead underwriter on this innovative transaction," said Chris Higgins, Goldman Sachs Head of Western US Public Sector and Infrastructure Water and Sewer Utility Investment Banking.

In 2016, the SFPUC became the first organization in the world to certify a green bond under the Climate Bonds Water Criteria, a funding mechanism established by the Climate Bond Initiative.

With the October listing, the SFPUC has now offered more than $2.5 billion in green bonds, making it among the global leaders in the field of climate change financing initiatives.

More information is available on the agency’s Green Bond report page, which identifies projects, environmental and social impacts, and alignment of projects with the United Nations Sustainable Development Goals.

Today’s award from Environmental Finance marks the second time that the SFPUC has been recognized for its efforts by the news agency. In 2019, the SFPUC received the Green Bond of the Year Award – US Muni Bond award for its two series of green bond offerings, which were the first to offer a “put” option.

About the San Francisco Public Utilities Commission

The San Francisco Public Utilities Commission (SFPUC) is a department of the City and County of San Francisco. It delivers drinking water to 2.7 million people in the San Francisco Bay Area, collects and treats wastewater for the City and County of San Francisco, and generates clean power for municipal buildings, residential customers, and businesses. Our mission is to provide our customers with high quality, efficient and reliable water, power, and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care. Learn more at www.sfpuc.org.

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