Green Bonds to Support New Cali P3
3 June, 2016
EXCLUSIVE: The California Infrastructure and Economic Development Bank (IBank) is planning a series of bond issuances to launch a series of new potential P3s, P3 Bulletin can reveal.
Through IBank’s California Lending for Energy and Environmental Needs (CLEEN) Center, the organization is to issue several Green Bonds in the fall to launch a pipeline of new climate infrastructure projects.
Michael Likosky, principal & infrastructure head at 32 Advisors, chaired the Governor Edmund Brown Jr. Task Force to Modernize the California Infrastructure Bank, which recommended that the IBank move into Climate Infrastructure and P3s.
These projects, which could be procured under a P3 model, will include sectors such as transportation, energy efficiency, renewable energy, water and alternative technologies.
The deals would be structured to include financing methods including debt, leasing contracts, service agreements and tax credits.
“California has a lot of Climate projects ready to go, so it is no surprise that its gangbusters at the Bank,” said Likosky, an authority on Climate Infrastructure. “There is broad statutory authority for a range of deals within the CLEEN Center. This offers a way of developing new Climate Infrastructure in an array of sectors through P3.”
Established in 2014, the CLEEN Center was created to facilitate and harness public-private investment in new projects. It utilizes IBank’s access to capital markets for clean energy and energy efficiency schemes and will help drive energy related deals for state and local governments.