Green Bond Fact Sheet
Stockton Public Financing Authority
Issue date: 20-Nov-2018 Maturity date: 01-Oct-2037 Tenor: 19

Date: 27-Nov-2018

Issuer Name

Stockton Public
Financing Authority

Amount Issued

USD145m

Country of risk

USA

CBI Database

IncludedIssuer Type1

Local government

Bond TypeUS MUNI

Green Bond Framework

N/A

Second party opinion

N/A

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☐ Energy☐ Solar☐ Onshore wind
☐ Offshore wind
☐ Geothermal☐ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Buildings☐ Certified Buildings☐ HVAC systems☐ Energy performance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☐ Transport☐ Electric vehicles☐ Low emission
vehicles☐ Bus rapid transit☐ Passenger trains☐ Urban rail

☐ Freight rolling stock☐ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Water & wastewater☒ Water distribution☐ Water treatment☐ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Waste to energy☐ Industry: components ☐Adaptation & resilience

Use of Proceeds☐ Land use & agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose &paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
ReportingNo additional reporting on or monitoring of the status of the Green Projects isanticipated.

Company information

The City emerged from bankruptcy in February 2015. The City of Stockton Water
Utility Stockton is one of three utilities managed and operated by the municipality,
together with Stormwater and Wastewater.

Firsts, records andcertifications

BAM GreenStar Bonds

Proceeds description

According to the prospectus, proceeds will be used to refinance previouslycompleted projects for the distribution of water via the “North” and “South” Water
System(s). While the importance of floods prevention is also taken into
consideration, this bond aims only at refinancing water distribution infrastructure.
The prospectus’ section on bondholder risks discusses various risks associated toclimate change, including droughts, floods and wildfires and acknowledges thatthese effects could be material to the city’s revenue streams.
The deal is insured by Build America Mutual Assurance Company (BAM) and wasdesignated as BAM GreenStar Bonds, a new label aimed at facilitating theidentification of US Muni green bonds aligned with the ICMA’s Green BondPrinciples.

Climate Bonds view

The BAM GreenStar Bonds designation is a welcomed labelling tool highlighting
good transparency standards in the US muni market. We haven’t seen many US
Muni issuers incorporating climate change considerations in their risk disclosure asyet.
Acknowledging the potential severity of the impacts from climate-related events isa positive first step towards the development of response plans and we encourageother issuers to follow the Stockton example.

UnderwritersCiti

Deal comments
Credit Rating

A- (S&P); BBB+ (Fitch)

Pricing summary

Pricing/yield at issuance: 105.008/2.240

Investors summary1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government,
non-financial corporate, sovereign