Be Climate Smart. Invest in BART Bonds.

10.10.19

Be Climate Smart. Invest in BART Bonds.

climate bonds

The SAN FRANCISCO BAY AREA RAPID TRANSIT DISTRICT (“BART” or the “District”) is preparing an offering of Sales Tax Revenue Bonds (“the Series 2019 Bonds” or “the Bonds”) expected to be sold in two series, the 2019 Series A and 2019 Refunding Series B (Federally Taxable). The Climate Bonds Initiative has certified the 2019 Refunding Series B series as Green Bonds (also known as Climate Bonds). This series will be BART’s fourth Green Bond issuance to date. BART plans to give an order priority for the Bonds to residents of the counties of Alameda and Contra Costa, and the City and County of San Francisco during its bond sale on October 22, 2019. The Series 2019 Bonds are Sales Tax Revenue Bonds secured by sales and use taxes collected in the three-county BART district.

This is not an offer to sell bonds or a solicitation of an offer to buy bonds. Investors must have access to the Preliminary Official Statement for the bonds and have access to a brokerage account in order to purchase them.

The proceeds expected from the sale of the 2019 Series A Bonds will primarily be used to provide sufficient funds for the acquisition, construction, renovation, improvement and equipping of facilities which will serve as the District’s new headquarters. The proceeds expected from the sale of the 2019 Refunding Series B bonds (Federally Taxable) will primarily be used to refinance prior Sales Tax Revenue Bonds issued by BART, providing significant debt service savings for the District.

The 2019 Refunding Series B bonds meet the criteria established by the Climate Bonds Initiative relating to reporting and transparency having financed projects that provide low-carbon transportation alternatives for Bay Area residents and reduce the impacts of climate change.  Green Bonds were popularized in 2010 as a method for raising capital for climate-friendly projects across the globe. In 2018, $169 billion in Climate Bonds were issued worldwide according to the Climate Bonds Initiative, an international nongovernmental, nonprofit organization dedicated to stimulating investment in projects and assets supporting environmental sustainability. In 2017, BART was the first California transit agency to obtain third-party green bond certification.

To buy BART Bonds follow these simple steps:

Step 1 – Have a brokerage account.

You must have an account with one of the brokerage firms participating in the bond sale listed below. Bonds cannot be purchased directly from BART. If you do not have an account at one of the participating firms, you may open one and purchase bonds during the order period (if you have a brokerage account, go to Step 2).

Investors are encouraged to begin the new account process well in advance of the sale. Depending on the brokerage, internal new account procedures may take some time to process.

Each firm has its own requirements for opening an account. BART does not endorse any particular brokerage firm. Additionally, BART does not guarantee that any one of these firms will open an account for an investor.

Step 2 - Learn about the bonds.

BART’s 2019 Sales Tax Bonds can only be offered through an Official Statement. Using the hyperlink below, download and read the Preliminary Official Statement to learn about the bonds, including their security, maturity dates, the types of projects they finance, and other information you may find important to help you make an informed investment decision. Again, neither this website nor the Preliminary Official Statement is an offer to sell any bonds.

Step 3 - Place your order.

Contact the brokerage firm with whom you have an account to get more information about how to buy bonds during the October 22 order period.

 

Preliminary Offering Statement and Online Investor Presentation

Fitch Rating Report - BART

S&P Global Rating Report - BART

 

Contact Information for Participating Bond Underwriting Firms

 

Barclays

212-528-1115

J.P. Morgan

855-231-8873

Siebert Cisneros Shank

800-334-6800

Citigroup

855-644-7252

Fidelity Capital Markets

800-544-5372