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SFPUC reports sale of $300M in wastewater revenue bonds, majority certified as green
Summary
CFO Eric Sandler told the commission the SFPUC sold just over $300 million in wastewater revenue bonds—75% green-certified by Sustainalytics—with competitive bids, a split rating (Moody's AA3; S&P upgraded to AA) and historically low true interest costs.
Eric Sandler, the SFPUC chief financial officer, presented results from a competitive sale of just over $300 million in wastewater revenue bonds executed in May. He said roughly 75% of the issue was certified as green by Sustainalytics under a new climate bond standard, making the issuance notable in the municipal market.
Sandler said Moody’s affirmed the agency’s AA3 rating while Standard & Poor’s upgraded the SFPUC’s equivalent rating from AA- to AA, a split-rating outcome that is not uncommon. He estimated the S&P upgrade reduced interest costs modestly—on the order of five basis points—producing lifetime interest savings measured in the low millions for $100 million-sized issues.
The bonds carried an approximate 30-year term with an average life of 21 years. Sandler said the sale drew strong investor interest, with several top bids closely grouped and a winning true interest cost well below recent levels.
"We sold just over $300,000,000 in wastewater revenue bonds," Sandler said as he summarized the transaction and highlighted press coverage and third-party certification.
Commissioners thanked the financing team for the successful sale. The commission heard no public opposition and recorded the update without further action.
