City of Columbia issues first-ever green bonds

By Steve Benjamin
Mayor
Columbia, SC

The City of Columbia is excited to share that it has issued its first-ever “green bond” to fund stormwater improvements and make an investment in sustainability.

The green bond – which is still a relatively new and fast-growing sector of the national municipal bond market – allows public entities to finance capital construction in a way that supports environmentally responsible investment. The $37.9 million bond is not only the first in South Carolina, but is also the first in the nation for standalone stormwater upgrades certified by the Climate Bond Initiative.

The bonds – sold on Dec. 6 and senior managed by Siebert Cisneros Shank & Co., L.L.C. (SCSCO), the nation’s top minority- and woman-owned municipal finance firm – are the first stormwater secured green bonds in the U.S. to receive this highly regarded seal of approval. The transaction received strong interest, including orders from 36 investors – with several stating that the green bond designation was a key factor in their investment decision.

Proceeds from the bonds will be used to upgrade and improve Columbia’s stormwater system, part of a $95 million investment over the next five years to address the City’s flooding and stormwater drainage issues. Improvements to the system have been prioritized to protect human life and health, appropriately maintain transportation and public infrastructure and to reduce flooding, erosion and sedimentation issues.

The upgrades to the stormwater system will include major improvements to the stormwater conveyance system (including storm sewer, channels and ditches), stormwater detention facilities, stream restoration and culverts, outfall stabilization and green stormwater infrastructure (such as bioretention facilities).

The planned spending will improve the City’s ability to handle future flooding, creating further cost savings by preventing damage to both public and private property.

As climate change brings more extreme weather, our cities must prepare by building more resilient infrastructure that can withstand these more powerful storms, even as the population size increases. But, at the same time, we must also invest smartly and in an environmentally-responsible way so that we are helping to mitigate these problems and leave a safer, more sustainable world for the next generation.

We are incredibly excited to be a state-wide and national leader in this space. Last year, Columbia made the commitment to 100 percent clean energy by 2036, and this month’s green bond announcement is yet another feather in our hat of accomplishments as we seek to become an even more sustainable, responsible city.