A municipal bond1 is a public debt security issued by a state, municipality, or county to finance its capital expenditures, including the construction of highways, bridges, or schools. Municipal bond investments support infrastructure, education and community services, spanning approximately 300 municipalities in 44 states and Washington, D.C.
As one example, MIM sourced a $10 million investment in the Sustainability Bonds of Berea College in support of capital expenditures aligned with the International Capital Markets Association’s (ICMA) 2018 Green Bond Principles and 2020 Social Bond Principles. The college, located in Berea, KY, is a long-time leader in ecological design and green building techniques, in accordance with its 2002 Ecological Renovation Standards and strives to achieve minimum LEED Gold criteria for campus renovations. Berea College is a leader in providing affordable access to high-quality higher education for high-achieving students from modest economic backgrounds, with a focus on students from the Appalachian counties of Kentucky and adjacent states. Supported by funding from its $1.6 billion endowment, the college charges no tuition and provides on-campus jobs that enable its students to pay for room and board, and to graduate largely debt-free.