California Authority to Sell $1 Billion of Green Bonds for Electricity Purchases

The California Community Choice Financing Authority plans to sell $1 billion of green bonds in connection with an agreement to buy 30 years of electricity.

Nonprofit electricity provider Clean Power Alliance expects to assign one or more renewable power purchase agreements to J. Aron, the commodities-trading unit of Goldman Sachs, according to a roadshow document posted Thursday on MuniOS.

Goldman is the lead underwriter for the sale of clean energy project revenue bonds, Series 2024B.

CCCFA was formed in 2021 with the goal of reducing power purchase costs through pre-payment structures. The CPA is one of the founding members of CCCFA, which said in January that it issued $5.48 billion of bonds in 2023.

The transaction structure is similar to a Series 2023D agreement, according to the roadshow document.

From the issue date through Nov. 30, 2032, the bonds will bear interest at fixed term rates in a term rate period, according to a preliminary official statement. The rate hasn't been determined yet. The bonds are special, limited obligations of CCCFA.

Moody's assigned an A1 rating.

https://www.marketscreener.com/news/latest/California-Authority-to-Sell-1-Billion-of-Green-Bonds-for-Electricity-Purchases-47666832/