Disabled Veteran Firm to Help with Upcoming “Green Bond” Sale

Treasurer Steven Grossman today announced that Drexel Hamilton, a disabled veteran-owned broker-dealer, will assist the Massachusetts Clean Water Trust with selling approximately $180 million in “Green Bonds” to investors. The bond sale will occur the week of December 8th and will offer investors an option that directly funds environmentally beneficial infrastructure projects.

“Particularly as we approach Veterans Day, it’s critical to remember the contributions that veterans make both in service to their country and in the workplace,” said Grossman. “Drexel Hamilton’s focus on recruiting, hiring and promoting disabled veterans is inspiring, and it pays appropriate tribute to the brave men and women in the military who have sacrificed so much for their country.”

Drexel Hamilton is owned by a service-disabled veteran and is built on the principle of offering meaningful employment opportunities to disabled veterans. One of the priorities of the firm is to maintain 40 percent or greater veteran employees and 20 percent or greater disabled veteran employees. Presently, Drexel Hamilton employs 44 veterans, 23 of whom are service-disabled.

Massachusetts became the first state in the country to offer Green Bonds in 2013, and this is the first time the Clean Water Trust has done such an issuance. In addition to funding environmentally beneficial projects, Green Bonds appeal to a wider range of bidders, thereby increasing competition and potentially lowering borrowing costs for the Commonwealth. State officials said the bonds are appealing to pension funds and endowments that are required to dedicate a portion of their holdings to green initiatives, spurring interest among some large institutional investors that might not otherwise buy Massachusetts bonds.

“I am excited to issue the Clean Water Trust’s first Green Bonds,” said Sue Perez, Executive Director of the Clean Water Trust. “This issuance is a continuation of our commitment to providing low cost financing to support wastewater and drinking water to the communities of the Commonwealth. These funds help protect the environment, public health and help bring communities into compliance with the federal Clean Water and Drinking Water Act.”

“The Commonwealth has long-recognized State Revolving Fund (SRF) loans as one of the most important tools at our disposal to protect public health, enhance the environment and create jobs through infrastructure projects. That the financial markets recognize the value of SRF to public health is reflected in the evolution of Green Bonds,” said David W. Cash, Commissioner of the Massachusetts Department of Environmental Protection. “The Clean Water Trust, working with Drexel Hamilton, put this Green Bond deal together so that it will both support jobs for our veterans and improve our environment. I call that a win-win.”

The Clean Water Trust is working with J.P. Morgan as lead managing underwriter of the Green Bonds. J.P. Morgan is a leading expert in Green Bonds and one of the banks that drafted the Green Bond Principles that serve as a guide for issuers and a standard for disclosure. The Preliminary Official Statement and Official Statement will outline how projects are selected and provide detailed project descriptions. The Clean Water Trust will issue an annual update as to the use of funds until they are fully disbursed.

The Clean Water Trust provides subsidized loans to cities and towns for clean water and drinking water infrastructure development. Since its establishment in 1989, the Clean Water Trust has loaned over $6 billion to improve and maintain the quality of water in the Commonwealth. An estimated 97 percent of Massachusetts’ citizens have benefited from the Clean Water Trust’s financial assistance.

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