SUNY raises $113 million through sustainability bonds for its residence-hall program

ALBANY, N.Y. — SUNY announced it has raised more than $110 million from DASNY’s first-ever issuance of sustainability bonds on behalf of SUNY to support its residence-hall program.

DASNY is the Dormitory Authority of the State of New York. DASNY issued about $113 million in SUNY dormitory facilities revenue bonds with a sustainability designation.

SUNY will use proceeds from the sustainability bonds to develop projects to help SUNY meet Gov. Kathy Hochul’s environmental goals, SUNY said in its announcement. Sustainability bonds finance projects that conform with green and social-bond principles.

All SUNY projects are required to comply with the NYStretch Energy Code – 2020. Projects will include the construction and rehabilitation of dormitory facilities on various SUNY campuses aligned with sustainability-bond guidelines. Expenditures include electrical projects, HVAC (heating, ventilation, and air conditioning) upgrades, and roofing improvements.

“Given that SUNY represents 40% of all state-owned buildings in New York, we must lead the way in researching new measures and implementing proven ones to minimize our environmental impact,” SUNY Chancellor John King, Jr., said in a release. “The initial release of sustainability bonds was a huge success, surpassing expectations and receiving more offers to buy than there were bonds available to sell. The $113 million raised from the bonds will allow SUNY to construct new, high-efficiency residence halls, and retrofit existing halls to achieve Governor Hochul’s ambitious state climate goals, which also align with the bond guidelines. I would like to thank our partners at DASNY for supporting SUNY’s sustainability goals.”

SUNY’s residential-hall program includes 450 dorms on 25 state-operated campuses for about 61,000 students each year.

The sustainability designation was provided by Portland, Oregon–based Kestrel, an approved verifier accredited by the Climate Bonds Initiative that reviews and analyzes financings for their ESG (environmental, social, and governance) benefits. Kestrel’s second party opinion confirms alignment with the sustainability bond guidelines of the International Capital Market Association, SUNY said.