Last night DC Water’s finance team received the Northeast Regional “Deal of the Year” award by The Bond Buyer for the innovative and highly successful green century bond issued in July 2014.

The $350 million bond deal was the first municipal century bond (100-year final maturity) issued by a water and sewer utility in the US. In addition, it was the first “green” bond in the US debt capital markets to be certified as such by an independent second party opinion in accordance with the Green Bond Principles. The century bonds were offered at an interest rate of 4.814% with a final maturity of 2114.

“DC Water is known widely for innovative technology, research and sustainability programs,” said Allen Y. Lew, Chairman of the DC Water Board of Directors and DC City Administrator. “Being recognized for innovative approaches to financing is a testament to Mark Kim’s vision, and the culture of innovation at DC Water fostered by George Hawkins.”

”I am proud of our unique bond sale and this recognition by The Bond Buyer, but even more so to be driving change in the industry,” said DC Water General Manager George S. Hawkins. “Innovation can, should and must come from every aspect of the water sector. Mark Kim, who comes from outside the industry, has brought a whirlwind of new ideas to DC Water, and was phenomenal in managing this complex transaction.”

DC Water Chief Financial Officer Mark Kim said, “This award and the transaction itself were a tremendous affirmation of DC Water’s management and performance. We have had excellent support from the DC Water Board of Directors, our finance staff and everyone who contributes to the success of the enterprise. Thanks also to Public Financial Management (PFM), Goldman Sachs and Barclays, who provided marketing and financial support for this offering.”

To fund large-scale construction projects, DC Water typically issues 30 to 35-year municipal bonds, reflecting the anticipated useful life of the assets. The bonds are paid from operating funds, and rates are set based on these commitments and projections of operating and capital costs. In this case, the Clean Rivers Project is designed to last a minimum of 100 years and it resolves a problem dating to the 1800s. Since this is a project that is resolving a challenge that has a two-century lifespan, it makes sense to spread out the cost to all the generations of ratepayers who will realize the benefits of the project.

A video describing this unique deal is available at: bondbuyer.com/video/2014-deal-of-the-year-northeast-region1067516-1.html. The awards program, which recognizes innovation in municipal finance, was open to all transactions that closed between Oct. 1, 2013 and Sept. 30, 2014.

The award was presented at the Waldorf Astoria in New York City and came on the same evening that DC Water’s General Manager George S. Hawkins was named a “Public Official of the Year” by GOVERNING Magazine in a ceremony at the Willard Intercontinental in Washington, D.C.