Mon, Nov 9th 2020 10:30 am
Given for $1.2 billion bond sale; $800 million from sale dedicated as green bonds to support renewable energy generation & transmission throughout state
Bond Buyer announced the New York Power Authority has won Deal of the Year 2020 in the Northeast Region for NYPA’s April sale of more than $1.2 billion in bonds to finance capital expenditures related to the Power Authority’s transmission assets and other capital projects. The bond sale – which included nearly $800 million dedicated as green bonds – directly supports the Power Authority in its transmission of clean energy throughout New York and the creation of the future digital grid while meeting the objectives of Gov. Andrew Cuomo’s Climate Leadership and Community Protection Act (CLCPA). The most aggressive climate change law in the nation mandates for New York to obtain 70% of its electricity from renewable sources.
NYPA’s inaugural green bond issuance represents the largest public power green bond transaction of all-time, with $792 million certified as “green” by Sustainalytics, and ensures the continued operation of NYPA’s 2,675-megawatt Niagara Power Project, which meets close to 10% of the electric power needs in New York state through clean hydroelectricity.
The awarded bond sale was the first public power deal to come to market after the onset of the pandemic-induced market shutdown and the largest public power transaction executed in 2020. The additional liquidity and flexibility were important for NYPA to continue to support its long-term customers, which include the state of New York, the City of New York, the Metropolitan Transportation Authority, New York City Health and Hospitals, municipal utilities and industrial customers.
John R. Koelmel, NYPA chairman, said, “The Power Authority is honored to receive this well-respected award from Bond Buyer as it’s reflective of the great, forward-thinking fiscal leadership at NYPA. The Power Authority has successfully leveraged the liquidity gained from the bond-sale earlier this year to maintain and modernize its generation and transmission assets throughout this difficult year.”
Gil C. Quiniones, NYPA president and CEO, said, “This prestigious award from Bond Buyer recognizes the Power Authority for being a first-mover in the public power industry, highlighting the largest public power Green Bond transaction ever. Even through the challenges of the pandemic, NYPA has remained aggressive in its pursuit of transforming New York state into a clean energy economy.”
The increase in capital directly supported NYPA in several of its ongoing large capital projects, including: