BNY Mellon has been appointed by the Vermont Educational and Health Buildings Financial Agency (VEHBFA) and Saint Michael’s College as trustee, paying agent and registrar for approximately $18.5 million in green bonds.
The bonds are the first green bonds to be issued by a higher education institution in Vermont, and will finance construction of a new hall of residence for students, which is being designed to use less energy. The new halls will replace older buildings that are more expensive to maintain, and will incorporate sustainable building practices.
BNY Mellon’s social finance products are designed to help investors to achieve return, while considering the environmental, social and governance (ESG) impact of investments.
Antonio Portuondo, head of BNY Mellon Corporate Trust’s public and not-for-profit business, said: “Green bonds continue to gain momentum as issuers and investors see their importance in confronting climate change.”
He added: “In addition to appealing to retail investors seeking more sustainable investments in their portfolios, green bonds benefit institutional investors addressing ESG mandates. This had been a challenge for fixed income investors prior to the emergence of green bonds.”
Neal Robinson, vice president for finance of Saint Michael’s College, said: “Green bonds are attractive to investors seeking to support projects designed to limit the impact of climate change, while obtaining competitive returns. Promoting environmental sustainability is an important goal of Saint Michael’s College.”
