BART Set to Issue First Measure RR Green Bonds, Earns Aaa/AAA Credit Rating

On May 9 and 10, Bay Area Rapid Transit (BART) has announced that it plans to sell approximately $388.85 million* of Measure RR and Measure AA general obligation bonds, after earning the highest possible credit ratings of Aaa from Moody's and AAA from Standard and Poor's.

$88.85 million* will be used to refinance prior Measure AA bonds for savings to District taxpayers. The $300 million* Measure RR bonds will be the first of the System Renewal bond issues, which will eventually total the $3.5 billion that voters approved last November via Measure RR, the funds from which are dedicated by law to rebuilding essential BART rail infrastructure.  

BART's stellar general obligation bond credit rating — earned through years of prudent financial management among other factors — makes it easier for the District to borrow money for future improvements while generating a reputation for trustworthiness among creditors and investors.

This upcoming issuance will also be BART's first Green Bond financing, a special designation which lets investors know that the funds raised from these bonds will be directed toward environmentally sustainable projects. The 2017 bond issue has been certified under the Climate Bond Initiative's rigorous, Low Carbon Land Transport Standard. As such, BART will be breaking ground as the first transit agency in the western U.S. to issue these certified Green Bonds, and the second in California across all sectors.

Bonds issued under Measure AA and Measure RR will be repaid with property taxes collected in the three BART counties of Alameda, Contra Costa, and San Francisco.

The District expects to publicize its 2017 Green Bond issue financing with notices in stations, on electronic destination signs on train platforms, through social media, and on its website.

*Preliminary, subject to change