Climate activists are celebrating that more than $19 million in bond sales occurred over two days to support environmental investments and help confront climate change in the state.
The Connecticut Green Bank recently issued its third Green Liberty Bonds to retail and institutional investors, according to the organization. Demand this year was greater than the previous two years, with retail investors surpassing $8 million for the first time, according to the organization.
Bonds are issued for both retail and institutional investors to invest in the green economy of the state, according to the group.
“Connecticut has a rich history when it comes to democracy, clean energy, and climate change. Inspired by Connecticut’s history of supporting federal bonds, the Green Bank offers Green Liberty Bonds and Green Liberty Notes to source capital for clean energy projects and provide a way for residents, businesses, and institutions of Connecticut to invest in growing our green economy,” according to the Green Bank.
According to the Green Bank, since 2011 it and “private investment partners” deployed more than $3.11 billion in capital for clean energy projects in Connecticut. “Projects recorded through FY 2025 show that for every $1 of public funds committed by the Green Bank that an additional $6.70 in private investment occurred in the economy,” according to the organization.
With priority given to Connecticut residents, the Green Bank said about $1.4 million in bonds went to in-state investors. Those orders were filled before $7 million from national orders. Institutional orders topped $40 million, according to the group.
“As we’ve seen with previous bond offerings, demand for this type of investment far exceeds our supply,” said Bryan Garcia, president and CEO of the Green Bank, in the emailed statement. “These lower denomination bonds continue to offer an opportunity for more people to invest in confronting climate change while reducing energy costs in Connecticut.”
“This builds upon successful, award-winning issuances in 2020 and 2021 which sold more than $36 million in bonds. Demand this year was again greater than the supply of bonds could satisfy, showing the high-level of interest in supporting investment to confront climate change in Connecticut,” he said.
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Individuals accounted for roughly 35% of the retail orders, according to Garcia. Institutional investors were able to place orders on Sept. 30, which also showcased strong demand. The Green Bank said the majority of institutional investments came from private wealth managers and bank trusts.
“Through three issuances of Green Liberty Bonds, more than $100 million has been invested in verified climate bonds to support residential solar PV and energy efficiency in Connecticut. While it has been four years since our last issuance, the favorable pricing achieved continues to illustrate the market’s interest in this type of offer from the Connecticut Green Bank as an issuer,” said Bert Hunter, Connecticut Green Bank’s chief investment officer.
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The use of proceeds from the bonds supports incentives for nearly 11,000 households and more than 90 megawatts of residential solar systems, totaling nearly $330 million of investment in projects in 166 cities and towns across the state, according to the Green Bank.
Stephen Underwood can be reached at [email protected]