Green Bonds

In administering loans, through the Water Pollution Control Loan Fund (WPCLF), the Ohio Water Development Authority (OWDA) currently prioritizes (i) projects that focus on nutrient reduction (primarily phosphorus and nitrogen) in order to mitigate harmful algae blooms that negatively affect drinking water quality and pose serious threats to public and environmental health and (ii) regional projects, which promote cooperation and consolidation of independent systems in order to provide more efficient and centralized wastewater treatment and improve compliance with federal and state regulations to protect public health and safety. Approximately 48% of Ohio’s watersheds are degraded by nutrient loading from phosphorus and nitrogen.

OWDA has retained Kestrel Verifiers, an approved Verifier accredited by the Climate Bonds Initiative and an Observer for the International Capital Market Association (“ICMA”), to verify that the Green Bond conform, in all material respects, with the ICMA Green Bond Principles. This green bond designation is intended to allow investors the opportunity to invest directly in bonds which finance environmentally beneficial projects.

Per the International Capital Market Association (“ICMA”), Green Bonds are any type of debt instrument where the proceeds will be exclusively applied to finance or re-finance, in part or in full, new and/or existing eligible green projects and which are aligned with the four components of the Green Bond Principles. The four core components are: (1) Use of Proceeds; (2) Process for Project Evaluation and Selection; (3) Management of Proceeds; and (4) Reporting.

Kestrel Verifiers has determined that the Series 2021A WPCLF Bonds are in conformance with the four core components of the ICMA Green Bond Principles, as described in Kestrel Verifiers’ ‘Second Party Opinion’, which is located in appendix I of the preliminary offering statement for the bonds.