Washington Suburban Sanitary Commission CPI Bonds of 2019

$233,565,000
Washington Suburban Sanitary District (Maryland)
Consolidated Public Improvement Bonds of 2019
Consolidated Public Improvements Bonds of 2019 (Second Series) (Green Bonds)

Wye River Group Served as WSSC’s Independent Financial Advisor for this Transaction.

Project Overview

The CPI Bonds of 2019 (“Construction Bonds”) will provide funding for the construction or reconstruction of water supply facilities, water supply lines and transmission mains and the acquisition of land or equipment for, or the construction, remodeling, enlargement, or replacement of any office or operating building necessary to administer or operate the water and sewer systems in the District and costs of issuance of the Construction Bonds.

The 2nd Series of Bonds, which was WSSC’s inaugural issuance of Green Bonds, will be used to finance the (i) planning, design and construction of (1) improvements to a water filtration plant in order to reduce solids discharges, (2) replacement pre-filter chlorination and filter air scour systems of such water filtration plant, (3) rehabilitation of large diameter water transmission mains and large system valves and small water mains and other appurtenances including meter and PR vaults and (ii) costs of issuance of the Green Bonds.

Financing Overview

The CPI Bonds of 2019 received AAA/Aaa/AAA credit ratings. S&P also conducted an independent green bond assessment of the Green Bonds and assigned an overall score of E1/80.  Both series of bonds were structured as tax-exempt municipal bonds and sold via competitive, public offering on December 12, 2019. The interest rates on the bonds are fixed for the term of the financing and resulted in a combined True Interest Cost of 2.64%. The financing closed on December 23, 2019.