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Metropolitan Transportation Authority Issues Inaugural Certified Climate Bond for Low Carbon Transport

[Media Release] LONDON: 11/02/16 13:00GMT: In a series of firsts, the giant New York based Metropolitan Transportation Authority (MTA) has broken new ground for public transport authorities with its latest USD 500m bond issuance.

This will be:

  • The first green bond issued by the MTA
  • The first US municipal bond to be certified under the Climate Bonds Standard new Low Carbon Transport criteria for investment in transport infrastructure compatible with a 2°C warming outcome
  • The largest US certified green bond to date

In addition to seeking interest from institutional investors, MTA will today launch a retail investor advertising campaign aimed at New Yorkers, emphasizing the green credentials and certification of the bond to potential investors amongst the general public under the banner of “Invest in the Planet, Invest in the MTA”

Proceeds from bond sales will be allocated for capital investments in MTA’s electrified rail assets and supporting infrastructure. International research and analysis firm Sustainalytics has provided verification of conformity with the Climate Bonds Standard V2.0. MTA will report annually to confirm the pool of funded assets are consistent with the Climate Bond Standard’s transparency and disclosure requirements in its [MTA] 15c2-12 Annual Combined Continuing Disclosure filings.  

Pat McCoy, Director, Finance MTA:

“We are very excited to be the first US issuer of a Certified Climate Bond. MTA’s transportation network is the lifeblood of the New York Metropolitan Region and vital to its economy.  We know that our network of electrified rail services is efficient and directly results in carbon avoidance. To be recognized for this by the investment community reinforces the essentiality of having a large and robust transportation infrastructure in this dense urban region.” 

Justine Leigh-Bell, International Standards Manager, Climate Bonds Initiative:

“Having a large public authority like MTA issue their first green bond certified against the Low Carbon Transport Standard is clear vote of confidence that the Climate Bonds Standards are applicable, relevant and usable for the international bond market.”

“MTA are leading by example with this Climate Bonds Certified bond issuance; they pave the way for other public authorities internationally to issue certified climate bonds for low carbon transport.”

“We must see a modal shift towards low emission mass transit infrastructure if we are to limit global warming to 2°C. Green bonds, such as this one, help fund the new levels of capital investment required to achieve our climate goal.”

“MTA have a multitude of assets and future funding proposals that are eligible for Climate Bonds Certification. We hope that this initial certified green bond issuance will be the first of many to come.”

Doug Sims, Board Member, Climate Bonds Initiative and Director at the Center for Market Innovation in the Urban Solutions program at the Natural Resources Defense Council:

“New York City's MTA  has for years been pivotal in allowing New Yorkers and surrounding residents equal access to jobs, services, and opportunity, while affording the city one of the lowest carbon footprints in the world per capita. These green bond investments will only improve and expand this rich history.”

“This groundbreaking action opens the way for investors to fully align their mission and values – and it will help New York become more prosperous, more active in response to climate change, healthier, and stronger financially.”

For more information, please contact:

Andrew Whiley at andrew.whiley@climatebonds.net, Communications Manager, +44 (0) 7914 159 838

The media release was originally posted on the Climate Bonts Initiative website here.

Source: http://www.climatebonds.net/resources/press-release/MTA-certification

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