FOR IMMEDIATE RELEASE
SACRAMENTO – The California Infrastructure and Economic Development Bank (IBank) announced today the sale of $272,605,000 million in tax-exempt fixed rate lease revenue bonds for the benefit of the California Teachers’ Retirement System (CalSTRS). IBank will deliver the bonds to CalSTRS to fund construction of the CalSTRS’ Phase II headquarters building in the City of West Sacramento.
CalSTRS, a component unit of the State of California, is the largest educator-only pension fund in the world and the second largest pension fund in the United States. CalSTRS provides retirement, disability and survivor benefits for fulltime and part-time California public school preK-12 teachers, community college instructors and public school administrators.
“It made sense to finance the project with green bonds, as the structure will be one of the most sustainable facilities in northern California,” CalSTRS Chief Executive Officer Jack Ehnes said. “We believe this issuance will contribute to the vibrant green bond marketplace.”
The headquarters project is designed to achieve a number of environmental certifications and will include onsite renewable energy. The Phase II project will include a childcare center, café, general purpose rooms for employee and public use as well as a pedestrian bridge connecting the Phase II facility with the currently occupied Phase I building.
“The CalSTRS project is a great example of how IBank contributes to a healthy California economy through financing,” Acting Executive Director Nancee Robles said. “With the proceeds of the bonds, CalSTRS will construct an energy-efficient building for employee and public use, enable CalSTRS to create an additional 1,200 jobs along with more than 1,000 constructions jobs and saves them more than $55 million compared to alternate financing plans. It’s an exciting sale because it works with IBank’s mission.”
The California State Treasurer’s office is the agent for sale of the revenue bonds on behalf of CalSTRS.
The senior manager on the sale was RBC Capital Markets, and the co-senior manager was Great Pacific Securities. The bonds are rated A1 by Moody’s Investors Service, AA by Fitch and A+ by Standard & Poor’s. The bonds have a 2049 final maturity.
About the California Infrastructure and Economic Development Bank
IBank was created in 1994 to finance public infrastructure and private development that promote a healthy climate for jobs, contribute to a strong economy and improve the quality of life in California communities. IBank is located within the Governor’s Office of Business and Economic Development and is governed by a five-member Board of Directors. IBank has broad authority to issue tax-exempt and taxable revenue bonds, provide financing to public agencies, provide credit enhancements, acquire or lease facilities, leverage State and Federal funds and provide loan guarantees and other credit enhancements to small businesses. Find more information on our website.
Gabrielle Stevenson
Public Information Officer
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