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Massachusetts Clean Water Trust, State Revolving Fund Bonds Series 18 (Green Bonds)

The Massachusetts Clean Water Trust has chosen Fidelity Capital Markets to serve as a co-manager on its upcoming $231 million1 State Revolving Fund Bonds Series 18 (Green Bonds) sale.

What is the opportunity?

The Mass Clean Water Trust will come to market with $231 million1 State Revolving Fund Bonds (Green Bonds). These Green Bonds provide financial assistance to borrowers (local governments, public authorities and certain private entities) for wastewater projects and drinking water projects. The projects adhere to the standards of the Federal Clean Water and Safe Drinking Water Acts. This offering allows investors to invest directly in bonds which finance environmentally beneficial projects.

The Bonds are special obligations of the Trust payable from a combination of three sources: 1) borrower payments (underlying loan repayments), 2) earnings received on investment of moneys in the funds (pursuant to the Master Trust Agreement), and 3) Commonwealth Contract Assistance (payments from the Commonwealth to provide a subsidy to certain borrowers). The Bonds are not obligations of the Commonwealth of Massachusetts.

Key benefits

The bond sale offers several attractive benefits for individual investors who are residents of Massachusetts, including the potential for stable, tax-exempt income; priority allocation when bonds are issued; and prices and yields that match those available to institutional investors.

How to place an order

Individual investors may place orders Tuesday, December 9. The sale may close early, due to market conditions or because all bonds may be allocated.

Additional resources

Municipal Bonds
Review the risks and benefits of investing in municipal bonds.

The Municipal Bond Story
Learn why municipal bonds are created, how they work, and who plays a role in the process.

Investing in a volatile bond market
Get the latest insights on the bond market, outlook for future rates, and investment strategies from Fidelity Viewpoints®.

Q3 bond update: supportive environment
See what our experts are saying about the bond market and why they’re recommending a cautious approach.

This information does not constitute an offer of any securities for sale.
The municipal market can be affected by adverse tax, legislative or political changes and the financial condition of the issuers of municipal securities.
1. Preliminary, subject to change
Interest income earned from tax-exempt municipal securities generally is exempt from federal income tax, and may also be exempt from state and local income taxes if you are a resident in the state of issuance. A portion of the income you receive may be subject to federal and state income taxes, including the federal alternative minimum tax. Before making any investment, you should review the official statement for the relevant offering for additional tax and other considerations.
The municipal market can be adversely affected by tax, legislative, or political changes and the financial condition of the issuers of municipal securities. Investing in municipal bonds for the purpose of generating tax-exempt income may not be appropriate for investors in all tax brackets or for all account types. Tax laws are subject to change and the preferential tax treatment of municipal bond interest income may be revoked or phased out for investors at certain income levels. You should consult your tax adviser regarding your specific situation.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties.
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Bond

an interest-bearing security for which the issuer agrees to pay the bondholder a specified sum of money, usually at specific intervals (known as a coupon), and to repay the principal amount of the loan at maturity; Zero-coupon bonds pay both the imputed interest and the principal at maturity

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maturity, maturity date(s)

the date on which the principal amount of a fixed income security is scheduled to become due and payable, typically along with any final coupon payment. It is also a list of the maturity dates on which individual bonds issued as part of a new issue municipal bond offering will mature

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Moody's

an independent organization that assigns credit ratings to debt instruments and securities to help investors assess credit risk

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Standard & Poor's (S&P) Corporation

an independent company that provides investors with market intelligence in the form of credit ratings, indices, investment research and risk evaluations and solutions

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yield

the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close