The New York State Energy Research and Development Authority (NYSERDA) sold $100 million in bonds to reign in pollution in the state.
The bonds will pay interest at a term rate of 4% per year until April 1, 2034, when they are subject to mandatory tender. The securities received a rating of Baa1 from Moody’s Investors Service, A- from S&P Global Ratings, and A- from Fitch Ratings.
NYSERDA’s website says the authority aims “to reduce greenhouse gas emissions, accelerate economic growth, and improve the quality of life for all New Yorkers equitably.”
The sale of the bonds comes weeks after a wave of noxious smoke blanketed New York and other northeastern states. Experts believe that wildfires like those that caused the smoke could become more common as the planet warms. The haze, which at one point cast a yellow hue over the New York skyline, drew attention to a worsening pollution problem.
NYSERDA develops renewable energy and energy conservation technologies. It also administers energy efficiency and renewable energy programs throughout the state. These projects are funded by charges included in New York utility bills, carbon credit auctions, and federal grants. This week’s bond issuance will support those purposes.
The bonds are limited obligations of NYSERDA, backed by revenue from pollution control utilities in the state that will borrow money from the authority.
KeyBanc Capital Markets Inc served as underwriter on the issuance.