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.
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.