BART plans to issue 2019 general obligation green bonds

07.19.19

BART plans to issue 2019 general obligation green bonds

green bonds

BART is preparing to offer its third Green Bond issuance, certified by the Climate Bonds Initiative, on July 29-30, 2019. BART plans to hold an early order period exclusively for individual investors on Monday, July 29, 2019, with preference given to residents of the counties of Alameda and Contra Costa, and the City and County of San Francisco. The Series 2019 Green Bonds are General Obligation Bonds secured by ad valorem property 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 Official Statement for the bonds and have access to a brokerage account in order to purchase them.

The estimated $600 million of proceeds from the sale of these Green Bonds represents a significant investment in climate-friendly mass transportation for the Bay Area.  Bonds issued under Measure RR for the BART System Renewal Program will go toward continued work on improving BART’s core infrastructure including track replacement, tunnel repair, station improvements and train control system upgrades.  Bonds sold under Measure AA will finance new improvements to BART facilities or refinance prior projects completed as part of the Earthquake Safety Program. These projects include retrofitting the Transbay Tube and upgrading various portions of the BART system to ensure the safety of the public and BART employees and to prepare for a rapid return to operations after a major earthquake.

The bond issue meets the criteria established by the Climate Bonds Initiative relating to reporting and transparency and will finance projects that provide low-carbon transportation alternatives for Bay Area residents and reduce the impacts of climate change.  Green Bonds (also known as Climate Bonds) cbcwere 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 Green 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 early 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 Green 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 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 July 29, 2019 early order period for individual investors.

Preliminary Offering Statement and Online Investor Presentation

Moody's Credit Report - BART

S&P Global Credit Report - BART

 Contact Information for Participating Bond Underwriting Firms

 Morgan Stanley
877.937.6739

Citigroup
855.644.7252

Siebert Cisneros Shank
800.334.6800

J.P. Morgan
855.231.8873

Stifel
415.364.6842

Backstrom McCarley Berry & Co. LLC
866.878.2622

Raymond James
800.248.8863