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Texas Port Issues $382 Million in Bonds

By Munichain News Desk

The authority that manages Texas’ Beaumont Port sold $382.3 million in bonds to develop waterfront property.

The Port of Beaumont Navigation District of Jefferson County sold the bonds in two series. The Series 2024A bonds, consisting of $164.4 million, mature between 2039 and 2054, paying interest at rates between 5% and 5.25%. The Series 2024B bonds, consisting of $217.9 million, mature in 2026 and pay interest at 10%. 

The bonds did not receive a rating.

The port will use the bond proceeds to buy a 52-acre waterfront property in Nederland, Texas. The proceeds will also finance the construction of a barge and ship dock on the property for unloading products including blue ammonia.

Blue ammonia is gaining in popularity as a potentially lower-emitting form of ammonia, the fertilizer ingredient that releases almost 2% of global carbon dioxide emissions. Unlike standard ammonia, the carbon released during the production of blue ammonia is sequestered before it reaches the atmosphere.

Last year, the Dutch chemicals company OCI began building a blue ammonia facility in Beaumont. The dock paid for by the bond proceeds will be used to handle blue ammonia for OCI under a 15-year agreement, according to the official statement accompanying the sale of the bonds.

The Port of Beaumont is among the busiest in the United States. It handled the seventh-most tons of cargo of any U.S. port in 2021, according to the Bureau of Transportation Statistics.

The port will also use the issuance proceeds to refund bonds that it sold in 2020.

The bonds are special, limited obligations of the Port of Beaumont Navigation District of Jefferson County, payable by its lease interest on the constructed dock.

Morgan Stanley & Co LLC served as lead underwriter on the issuance, purchasing the bonds for $376.6 million. The price reflected a discount of $5.7 million.

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