Kaufman Hall Serves as Financial Advisor for First-Ever Issuance of Healthcare Sustainability Bonds
CHICAGO – March 1st, 2023, Boston Medical Center (BMC)—a 514-bed academic medical center serving the greater Boston area that is rated Baa2 by Moody’s and BBB by S&P—has issued the first-ever bonds with a “Sustainable” designation in the healthcare municipal market with its $232,415,000 Series G (2023) financing. Kaufman Hall served as financial advisor to BMC, and RBC Capital Markets served as underwriter. Highlights of the issuance include:
- The bonds were designated Sustainable by Kestrel Verifiers, an independent third-party assessor of the environmental, social, and governance (ESG) impacts of municipal bonds.
- The Sustainability designation indicates that BMC’s bonds qualified as both Green Bonds, recognizing BMC’s leadership on environmental efforts (including its pledge to reduce its carbon footprint by 50% by 2030), and Social Bonds, recognizing BMC’s service to underserved Boston populations and its focus on improving social determinants of health.
- Proceeds from the bond issuance will be used to fund conversion of ambulatory space to inpatient use and add new operating rooms at facilities in high-occupancy areas of BMC’s market.
- The transaction drew strong and diverse investor demand, with more than $2 billion in orders from more than 50 funds, $90 million of which came directly from ESG-focused funds.