Assured Guaranty Municipal Corp. Insures $608 Million of Inaugural Green Transmission Project Revenue Bonds for the Power Authority of the State of New York
25 April 2022 - 6:45PM
Business Wire
Proceeds of Tax-Exempt Green Bonds Will Fund
Transmission Grid Modernization Projects and Support for
Distribution of Renewable Power
Assured Guaranty Municipal Corp. (AGM)* announced that it has
insured all $608.3 million of tax-exempt Green Transmission Project
Revenue Bonds (Green Bonds) issued by the Power Authority of the
State of New York (NYPA) on April 21. The Green Bonds represent the
first issuance of bonds under a newly-created transmission revenue
credit intended to finance new transmission projects and
improvements to existing transmission projects of NYPA that have or
are expected to have regulated rates of return.
The proceeds of the Green Bonds will be used to finance the
capital costs of two transmission projects known as the “Central
East Energy Connect Transmission Project” and the “Smart Path
Reliability Transmission Project”. The bonds will be payable solely
from revenues derived from the funded projects (and not NYPA’s
general credit) and, secondarily, by AGM’s unconditional guaranty
of timely principal and interest payments.
“The capital generated from this green transmission revenue
bonds sale is a significant investment in the foundation of a clean
energy economy in New York State,” NYPA Interim President and CEO
Justin Driscoll said. “NYPA is working to achieve Governor Kathy
Hochul’s bold clean energy vision for the state, addressing the
administration’s 2022 State of the State green bonds commitment and
accelerating New York’s goal to ensure that 70% of the state’s
electricity comes from renewable energy by 2030, and 100% by
2040.”
James Binette, Managing Director, Public Finance, Eastern Region
of AGM said: “We are pleased that Assured Guaranty can bring its
financial strength and three decades of experience working with
municipal issuers to assist in launching this NYPA Green Bond
issue, as well as other bond transactions that finance projects
designed to produce or distribute energy more cleanly, cheaply and
in a renewable way. Our guaranty can help attract investors to
large transactions or novel structures and lower the cost of
bringing bonds to market in general. We look forward to future
endeavors with NYPA, the State of New York and other issuers
developing renewable energy projects and future Green Bond
issuances.”
Goldman Sachs and Co. LLC managed the sale.
IMPORTANT NOTICE
All of the securities having been sold, this announcement is
for information purposes only. This announcement does not
constitute an offer to sell or the solicitation of an offer to buy
any securities.
The securities described herein have not been and will not be
registered under the United States Securities Act of 1933, as
amended ("Securities Act"), or with any securities regulatory
authority of any state or jurisdiction of the United States, and
may not be offered, sold or transferred, directly or indirectly, in
the United States absent registration under the Securities Act or
an available exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act and the
securities laws of any state or other jurisdiction of the United
States.
*AGM is a subsidiary of Assured Guaranty Ltd. (AGL and, together
with its subsidiaries, Assured Guaranty). Through its subsidiaries,
Assured Guaranty provides credit enhancement products to the U.S.
and international public finance, infrastructure and structured
finance markets, and also provides asset management services. AGL
is a publicly traded (NYSE: AGO) Bermuda-based holding company.
More information on AGL and its subsidiaries can be found at
AssuredGuaranty.com.
Cautionary Statement Regarding Forward-Looking
Statements
Any forward-looking statements made in this press release
reflect Assured Guaranty’s current views with respect to future
events and are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such statements
involve risks and uncertainties that may cause actual results to
differ materially from those set forth in these statements. These
risks and uncertainties include, but are not limited to, those
resulting from Assured Guaranty’s inability to execute its
strategies; the demand for Assured Guaranty’s financial guarantees;
actions that the rating agencies may take with respect to Assured
Guaranty’s financial strength ratings; adverse developments in
Assured Guaranty’s guaranteed portfolio; other risks and
uncertainties that have not been identified at this time;
management’s response to these factors, and; other risk factors
identified in AGL’s filings with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on
these forward-looking statements, which are made as of April 25,
2022. Assured Guaranty undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220425005764/en/
Robert Tucker, 212-339-0861 Senior Managing Director, Investor
Relations and Corporate Communications rtucker@agltd.com
Media: Ashweeta Durani, 212-408-6042 Vice President, Corporate
Communications adurani@agltd.com
Assured Guaranty Municipal (NYSE:AGO)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Assured Guaranty Municipal (NYSE:AGO)
Historical Stock Chart
Von Apr 2023 bis Apr 2024