BOSTON - State Treasurer Deborah B. Goldberg, Chair of the Massachusetts School Building Authority ("MSBA"), James A. MacDonald, Chief Executive Officer and Jack McCarthy, MSBA Executive Director/Deputy CEO, announced today that the MSBA will be the first municipal issuer in the Commonwealth of Massachusetts to use the Social Bond designation in next week's transactions. The MSBA has designated the 2020 Bonds Series A and B bonds as 'Social Bonds' appealing to those investors seeking investment opportunities that comport with the UN SDG and Social Bond Principles. MSBA has determined that the school facilities to be financed and refinanced with the proceeds of the Series 2020 bonds are 'Social Projects' based on the social benefits of ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all.
"I am very excited that our team at MSBA will be the first bond issuer in Massachusetts to use social bonds to fund public school projects throughout our state, said Treasurer Deborah B. Goldberg. "MSBA is a mission driven organization committed to insuring that our kids have access to the 21st century learning environments that will help them succeed. These bonds will create opportunities and invest in positive social change."
This transaction will benefit the financial sustainability of the MSBA Capital Program as well as maximize the amount of funds available to fund projects going forward. The transaction will also result in a significant amount of savings on previously issued debt benefiting Massachusetts taxpayers. Additionally, the MSBA's reimbursement formula fits and reflects the Social Bond principles of using poverty factors in the reimbursement and consideration of incentives for smart growth principles, such as regional schools, green school buildings and overlay zoning districts.
"The proceeds from this bond deal will help improve the teaching and learning environment for students across the Commonwealth and allow the MSBA to continue to fund much needed school building projects in a cost-effective way," stated MSBA Executive Director/Deputy CEO McCarthy.
Together with the Board, the Massachusetts School Building Authority has spent the past 16 years working to uphold the core mission of partnering with Massachusetts communities to support the design and construction of educationally-appropriate, flexible, sustainable, and cost-effective public school facilities. Since its 2004 inception, the Authority has funded approximately $14.5 billion of k-12 public school construction.