Ohio State bonds for the inpatient hospital project awarded Green Bond designation
Leveraging its strong commitment to sustainability goals within its physical environment, Ohio State secured the University System of Ohio’s first green bond designation with the successful issuance of its $600 million Series 2021A bonds.
Proceeds of the bonds will contribute to the financing of the Ohio State Wexner Medical Center’s new 1.9 million-square-foot inpatient hospital. The inpatient hospital’s sustainable design and construction standards will promote energy efficiency, conserve water, improve ecosystem services and divert waste.
“Ohio State recognizes that successfully combating the climate crisis requires an all-hands-on-deck approach in which every institution, organization, and individual contributes to the goal of preserving our planet for generations to come. This green bond designation will enable us to invest in sustainable projects that demonstrate our deep-seated commitment to reducing harmful emissions and protecting the environment,” said Ohio State President, Kristina M. Johnson.
“In addition to supporting sustainability efforts, the green bond designation helped the university leverage significant investor interest within a very favorable interest rate environment,” said Michael Papadakis, Senior Vice President and Chief Financial Officer.
“As a result, the university’s all-in borrowing cost of 2.46% represents the lowest long-term borrowing rate in the history of the university,” said Papadakis.
Kestrel Verifiers, Approved Verifiers accredited by the Climate Bonds Initiative, determined the bonds are aligned “with the four core components of the International Capital Market Association Green Bond Principles” and “the new facility will meet robust energy efficiency standards for hospitals and incorporate green building features.”