Covanta receives $50M in tax-exempt green bonds

The bonds will cover costs related to its metals recycling activities, its total ash processing system and its energy-from-waste plant.

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Covanta Holding Corp., Morristown, New Jersey, has announced the closing of a $50 million in new tax-exempt bonds, issued through the Pennsylvania Economic Development Financing Authority, with a  20-year maturity and a coupon of 3.25 percent. Covanta provides sustainable waste and energy solutions

The bonds were issued in compliance with the Green Bond Principles and will finance eligible green expenditures specific Covanta facilities in Pennsylvania, the company reports in a news release announcing the tax-exempt bonds. Specifically, the bonds will cover costs related to Covanta’s metals recycling activities, construction of its total ash processing system and its energy-from-waste plant maintenance.

“We are very pleased to announce our first green bond issuance, which recognizes our commitment and ongoing investment in environmental sustainability,” says Bradford Helgeson, Covanta’s chief financial officer. “From a financing standpoint, these bonds represent very attractive, long-term funding that further improves the cost, tenor and flexibility of our capital structure.”

According to a Covanta news release, Covanta’s energy-from-waste facilities convert about 21 million tons of waste from municipalities and businesses into clean, renewable electricity to power about 1 million homes and recycle more than 600,000 tons of metal.