East Bay Municipal Utility District



Wastewater System Revenue & Refunding Bonds, Series 2022A (Green Bonds) & Series 2022B

May 25, 2022


Image by Sam Mgrdichian

The 2022A Green Bonds were issued to (i) finance and/or reimburse the District for certain costs of improvements to the Wastewater System of the District and (ii) pay costs incidental to the issuance of the 2022A Green Bonds.  The 2022B Bonds were issued to (i) refund all of the District’s outstanding Wastewater System Revenue Refunding Bonds, Series 2012A and (ii) pay costs incidental to the issuance of the 2022B Bonds. SWS developed the investor presentation for the District’s financing.

The 2022A Green Bonds were the District’s inaugural Green Bond issuance on their Wastewater System credit. The 2022A Green Bond designation was made by the District in accordance with the District’s Green Bond Guidance, which was approved on March 22, 2022. SWS structured the 2022AB Bonds for sufficient block sizes and nonoverlapping maturities between the two series to optimize investor demand. The investor presentation was viewed by 11 investors, with 7 of those investors placing orders during pricing.

The municipal market had been experiencing volatility for weeks. MMD decreased by a total of 23 to 35 bps across the yield curve since the District’s 2022A&B1-2 Water System Revenue financing that priced the week prior on May 18th. This marked the first time since the beginning of February 2022 that each year across the MMD yield curve had decreased for at least two consecutive days. 

Approximately $278.86 million in orders were submitted by 32 investors, with potentially 19 new investors. On average, each maturity was 7.7x oversubscribed and every maturity was at least fully subscribed. Oversubscription allowed SWS to lower pricing spreads by 8 to 13 bps for the 2022A Green Bonds and 7 to 11 bps for the 2022B Bonds.

The 2022A Green Bonds achieved an all-in TIC of 3.93%%, while the 2022B Bonds achieved an all-in TIC of 3.27%; the 2022B Refunding Bonds achieved approximately $3.17 million in NPV savings, or 15.83% of the refunded bonds.