BAM GreenStar is designed to help close the gap between the significant number of municipal bonds that fund projects that are eligible to be financed with green bonds and the relatively few that are currently being labeled as such. BAM GreenStar addresses:
- The limited awareness of the benefits of Green Bond issuance among issuers
- The lack of scale in the number and volume of Green Bond sales in the U.S. municipal sector, which limits the number of investors focused on the sector and imposes friction costs on green bond transactions
- Perceptions that verification and reporting carry a high cost
BAM will assign a BAM GreenStar designation to eligible BAM-insured bonds at no incremental cost to the issuer, leveraging our core competence in analyzing municipal accounting and financial reporting, capital investment plans, and legal documentation, and building on our existing annual credit surveillance. BAM GreenStar is a cost-effective and transparent way for issuers to access the municipal green bond market.