Negocios Now

negociosnow negociosnow www.negociosnow.com 10 Abril 2015 By Tara García Mathewson T he Metropolitan Water Reclama- tion District of Greater Chicago became the first government agency in the state to raise money with "green bonds" this winter. The financial firm that handled the sale? AC Advisory, founded by Colombian native, Adela Cepeda. Cepeda has advised the Water Recla- mation District through a number of bond sales over more than a decade of working with the agency. This one rai- sed $300 million for a number of envi- ronmentally friendly projects as well as refinancing. Cepeda considers it an honor to have been involved. "It was a tremendous opportunity to help bring forth the first green bond sale in the State of Illinois," Cepeda said. "At a time when the state's credits are challenged, to bring a sale that is opening up a new market means a great deal to my firm." Green bonds offer a way for muni- cipalities to attract investors who may not have been interested in govern- ment bonds before but are pulled in by the promise of funding sustainability projects. In the case of the Water Recla- mation District, Commissioner Frank Ávila said the bulk of the $300 million will go toward three main projects. One-third of it will fund work on the Tunnel and Reservoir Plan, a two-pron- ged effort to protect Lake Michigan — and the region's drinking water — from contamination. Another $50 million will fund the district's stormwater management program, which helps municipalities address flooding. And $75 million is for the district's resource recovery efforts. That means turning human waste into useful byproducts for use within the district and, perhaps eventually, for sale. The final portion of the bond reve- nue will cover refinancing, saving tax- payers a couple million dollars over the life of the district's existing debt. Massachusetts first raised revenue with green bonds two years ago, beco- ming a model for state and local gover- nments nationwide. Cepeda's firm handled a green bond sale for the State of Connecticut since then and encou- raged the water reclamation district to join the trend. "As soon as Massachusetts did it, this became an attractive option to expand the investor base," Cepeda said. Besides the ethical incentive to sup- port environmentally friendly projects, many investors continue to be drawn to the Water Reclamation District for its reliability. The district's latest bond sale came with AAA outlooks from Fitch Ratings and Standard & Poor's. Moody's Investors Service did not rate the green bonds in the latest sale and, while it downgraded the district from its top credit rating in 2013, the other two agencies have continued to give it high marks across the board. For investors, the district generally remains a safe bet. And at the Water Reclamation Dis- trict, Cepeda continues to be an impor- tant advisor. Ávila said she has helped the district market its bond sales and set the timing for the best interest rates. "Adela is an excellent consultant and highly educated in the financial mar- ket," Ávila said, "especially in the bond dealings with municipal bonds." The Water Reclamation District raised revenue from its debt issuance this past December. Many elements of its sustainability projects are already underway. latina-owned firm leads state's first green bond sale Foto Cortesía Desde la derecha, Anne Pramaggiore, presidente y CEO de ComEd; Fidel Márquez, vicepresidente de Asuntos Externos y de Gobierno, y un representante del medio Via Times observan una exhibición durante la 3ra Mesa Redonda Anual para Medios Multiculturales, celebrada en Lacuna Loft Studios, el pasado 14 de abril. Photo Brian Morowczynski Adela Cepeda, President of AC Advisory, has led to a national leader- ship position in municipal financial advisory services with over $125 billion in completed transactions www.cityofchicago.org/SBC @ChiSmallBiz /ChiSmallBiz /ChicagoBACP SATURDAY, MAY 9 / 10 AM – 2 PM / Free Business Expo ARTURO VELASQUEZ INSTITUTE / 2800 S. Western Ave. Keynote Speaker: AIDA GIACHELLO SMALL BUSINESS CENTER ON THE R AD The City of Chicago Department of Business Affairs and Consumer Protection and the Small Business Center invites small business owners and entrepreneurs to its FREE Small Business Center on the Road business expo with more than 40 exhibitors. Expo Resources: • Free Tax Clinic by the Center for Economic Progress • Two Workshops for entrepreneurs • One workshop for CPS students • City of Chicago Business Consultants ready to support licensing needs and answer questions • Photographer to take professional head shots for attendees to use for marketing and social media sites • Networking Hour #CHISMALLBUSINESSEXPO negociosnow negociosnow El Especial

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