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Massachusetts Green Bonds Mirror World Bank: Muni Deals

Massachusetts, taking a cue from the World Bank, is selling $100 million in debt called Green Bonds, saying it’s the first U.S. state to issue such securities to fund environmental projects.

The tax-exempt general obligations are modeled after ones from the Washington-based development lender, which has sold more than $3 billion in green securities since 2008 to help combat climate change. Endowments and pension funds that are required to invest in environmental ventures may be attracted to the issue, state Treasurer Steven Grossman said. Proceeds of this week’s sale will be used for improving energy efficiency in state buildings, river revitalization and land acquisition, according to bond documents.