AlexRenew’s Green Bond Sale Marks First for a Wastewater Authority in Virginia


AlexRenew’s Green Bond Sale Marks First for a Wastewater Authority in Virginia

Publication Date
Share on TwitterShare on LinkedInShare via email
Article Intro Text
Today, AlexRenew announced the sale of $45.7 million in green bonds, marking the first green bond sale by a wastewater authority in the Commonwealth of Virginia. The bonds were sold at an overall interest rate of 4.17% and will be repaid through 2054.

AlexRenew was established by the Virginia Water and Waste Authorities Act in 1952 to manage and treat wastewater in Alexandria and parts of Fairfax County. It is one of 33 water and wastewater authorities in Virginia that share a similar mission.

"AlexRenew’s use of green bonds is both a strategic financial decision and a commitment to sustainably recovering resources from wastewater," says Caitlin Feehan, AlexRenew’s Chief Administrative Officer. “The bond proceeds will support projects focused on improving water quality in the Potomac River and Chesapeake Bay — waterways that are both critical to the health and future of our region." Funding from the bonds will support several projects in AlexRenew’s capital portfolio; including upgrades to its biosolids treatment systems, wastewater screening and pumping facilities, and its filtration processes. These projects will help the authority adapt to meet future regulations, environmental challenges, and continue to deliver on its mission. 

Sunset Over AlexRenew
Sunset Over AlexRenew

Green bonds are used specifically to fund projects that will have a positive environmental impact. “The decision to embrace green bonds aligns strategically with AlexRenew’s environmental sustainability objective,” says Justin Carl, AlexRenew’s General Manager and CEO. “We’re investing in our future with these projects, building a foundation for our city and region to thrive, and striving to set a new bar for the industry through AlexRenew’s use of innovative funding strategies and advanced technologies.”

Construction at AlexRenew is expected to be underway later this year in support of AlexRenew’s biosolids upgrades, while work on its screening, pumping, and filtration processes will begin in 2025. 

There was exceptional demand from investors for AlexRenew’s bonds, as evidenced by the number of orders and diversity of investors. Orders were received from over 35 separate investment firms plus individual investors. Additionally, demand for AlexRenew’s bonds exceeded the number available, which allowed AlexRenew to lower interest rates on the bonds throughout the pricing process.

In preparation for this sale, AlexRenew requested a bond rating from S&P Global Ratings (S&P). S&P recognized AlexRenew with its highest 'AAA' long-term rating for the bonds. This prestigious rating reflects AlexRenew’s exceptional financial position.

“PFM Financial Advisors, McGuireWoods, our underwriters – Siebert Williams Shank & Co. and its co-managers Loop Capital Markets and Wells Fargo Securities, Kestrel, and Raftelis were all instrumental in supporting AlexRenew with the green bond sale,” says Feehan. “We are thankful for these partnerships and their work to guide AlexRenew through this important process.”