Connecticut launched its Green Liberty Bond program in 2020 to mobilize private investment in green infrastructure and climate-resilient businesses and communities in the state. The bonds are issued by the Connecticut Green Bank, a semi-public institution founded in 2011 and the first state-level green bank in the US.
The bank has raised more than $80 million from retail and accredited investors through two previous bond issuances. The third bond is targeting roughly $18 million and will be used to refinance the Residential Solar Incentive Program for Connecticut households.
The Residential Solar Incentive Program, or RSIP, offers financial incentives for households that add solar panels to their roofs. It sells energy credits generated from those rooftop panels to utilities, which buy them to meet their green energy goals. Revenues from those purchase agreements underpin the green bond issuances.
Proceeds from the latest Green Liberty Bond will also fund a reserve to ensure the bank can service its debt.
The offering is open to all investors, including retail investors, starting at $1,000.
Greening small businesses
The Connecticut Green Bank is also out with its 14th Green Liberty Note, which allows retail investors to help the state’s small businesses and local municipalities finance energy upgrades and make energy efficiency improvements through the state-wide Small Business Energy Advantage program.
The one-year notes start at $100 on the Honeycomb Credit platform.
Connecticut Green Bank says its collective initiatives have deployed more than $3.1 billion, mobilizing $6.70 from private investors for every $1 of public capital invested.
