Sound Transit sells nearly $1 billion in 'green bonds'

Sound Transit on Tuesday completed the sale of almost $1 billion of green bonds to fund regional transit projects, including more than 30 miles of light-rail extensions.

The sale marks the largest municipal sale of green bonds in the world, Sound Transit officials said in a statement.

"A growing number of investors want to see strong returns for both their portfolios and their planet," said Dow Constantine, Sound Transit chair. "They need look no further than these green bonds, which will fund transportation projects that increase commuters' mobility while reducing reliance on cars."

The sale is expected to generate $600 million in new proceeds for the agency and refinance $398 million of previously issued bonds with higher interest rates.

The bond issuance is fully compliant with International Capital Market Association Green Bond Principles, validated through an independent opinion from investment research firm Sustainalytics.

Sound Transit's credibility as a green bond issuer is a result of its construction and operation of transit services that are deemed more sustainable than other transportation options, as well as its commitment to sustainability in other day-to-day tasks, agency officials said.