BART to issue 'green' bonds to fund rail infrastructure improvements

Bay Area Rapid Transit (BART) next week will issue its first-ever "green" bonds to improve its core infrastructure.

The agency on May 9 plans to hold an early order period for individual investors, BART officials said in a press release.

Green bonds let investors know that the proceeds of the sale will go toward environmentally sustainable projects.

For BART, that means that about $300 million generated through the bond sale will be used to replace track, repair tunnels, rehab stations and improve BART's train control system. The efforts are expected to enable the agency to run safer and more frequent service.

BART also plans to use around $88 million from the sale to refinance prior bonds to help save money for local taxpayers, according to the agency.

The bonds are being issued under the Measure AA and Measure RR ballot initiatives. They'll be repaid with property taxes collected in Alameda, Contra Costa and San Francisco counties.

Last year, residents in those three counties approved the Measure RR measure, which is expected to eventually generate $3.5 billion to rebuild BART's rail infrastructure.

Other transit agencies that have sold green bonds include the Metropolitan Transportation Authority and Sound Transit.