Port of Los Angeles Issues $35.2 Million in ‘Green’ Bonds

Los Angeles is First U.S. Seaport to Enter the Sustainability Bond
Market

SAN PEDRO, Calif.–(BUSINESS WIRE)–The Port of Los Angeles has expanded its commitment to sustainability by
issuing $35.2 million in green bonds as part of a larger debt
refinancing successfully completed this week. The move marks the first
time a U.S. port has entered the growing sustainability bond market
where investors support projects and companies making positive social
and environmental change.

“Running a competitive and environmentally responsible port permeates
every facet of our operations,’’ said Marla Bleavins, the Port’s Deputy
Executive Director and Chief Financial Officer. “This bond offering and
the unprecedented savings it yields speak volumes about the value of
this approach.”

The green bonds are part of an overall $201.6 million bond issue that
will net the Port a record present value savings of $32.5 million, an
average of $1.9 million annually through 2040. During the process, all
three top credit rating agencies – Standard & Poor’s (S&P), Moody’s
Investor Services and Fitch Ratings – reaffirmed the Port’s “AA” and
“Aa2” investment rankings, the highest ratings given to a port without
taxing authority.

The Port’s top credit ratings reflect its strong market position,
resilient revenue stream, strong financial management, superior
infrastructure, cash reserves and manageable debt.

The Port’s green bonds underwent an independent review to ensure the
transaction conforms to international social and sustainability
principles. Sustainalytics, a global leader in sustainability research
and analysis whose clients include Apple Inc. and Starbucks Corp.,
performed the third-party evaluation. The firm validated the integrity
of the Port’s green bonds for three projects completed in recent years.

  • The Wilmington Waterfront Park: a 30-acre green space with walkways,
    bike paths and a children’s playground that also serves to buffer the
    community from Port traffic.
  • The Port of Los Angeles Police Headquarters: The structure’s
    environmental and energy-efficient features earned gold-level
    certification from the U.S. Green Building Council’s Leadership in
    Energy and Environmental Design (LEED).
  • The Cabrillo Shallow Water Habitat: a 190-acre feeding area for fish
    and marine birds.

The Port of Los Angeles is America’s premier port and has a strong
commitment to developing innovatively strategic and sustainable
operations that benefit Southern California’s economy and quality of
life. North America’s leading seaport by container volume and cargo
value, the Port of Los Angeles facilitated $270 billion in trade during
2015. Port operations and commerce facilitate more than 133,000 jobs
(about one in 14) in the City of Los Angeles and 479,000 jobs (or one in
18) in the five-county Southern California region. The San Pedro Bay
Ports support nearly 1 million California jobs and 2.8 million
nationwide.

Contacts

The Port of Los Angeles
Phillip Sanfield
Director
of Media Relations

Direct: 310-732-3568
Main:
310-732-0430

psanfield@portla.org