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Delaware Sustainable Energy Utility saves state $4.7M with refinancing

Delaware News Desk
Smyrna/Clayton Sun-Times

The Delaware Sustainable Energy Utility announced a successful $52,985,000 refinancing of 2011 tax-exempt Energy Efficiency Revenue Bonds.

The refinancing will save Delaware $4,769,271 in present value debt service payment reductions. The true-interest cost of the refinancing is 2.42%.

The refinancing effort was done in support of projects for these agencies: Department of Corrections, present value savings of $3,154,920, equaling 10.37% savings; Office of Management & Budget, present value savings of $744,142, equaling 8.67% savings; Department of Children, Youth & Their Families, present value savings of $91,651, equaling 8.15 % savings; and Delaware State University, present value savings of $778,557, equaling 8.66% savings.

"The DESEU constantly monitors the Bond Market to ensure the best possible terms for the agencies we serve,” said DESEU Executive Director Tony DePrima. “We are proud to provide the due diligence to fulfill our mission of offering the most affordable energy efficiency initiatives."

The newly refinanced bonds are considered to be “Green Bonds.” A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects. These bonds are typically asset-linked and backed by the issuing entity's balance sheet, so they usually carry the same credit rating as their issuers' other debt obligations.

Energize Delaware is a nonprofit organization offering a resource to help residents and businesses save money through clean energy and efficiency. Programs provide energy education and financial incentives to Delaware homeowners, businesses, nonprofits, state agencies, farms, houses of worship, local governments and schools.

For more, visit energizedelaware.org.