California State Treasurer John Chiang Monday announced the sale of $90 million in “green bonds” to finance the construction of energy efficient student housing at Loyola Marymount University.

The proceeds of the taxable and tax-exempt bonds will be used to add 625 beds at the private university’s Westchester main campus, according to Chiang’s office.

“This is just one more great example of how green financing can significantly change the calculus in how we pay for billions in green infrastructure needs throughout our state,” Chiang said. “California is setting an example for the rest of the nation on how to build cleaner, greener projects that not only improve our road(s), bridges and schools, but that also have an eye toward curbing the destructive effects of climate change.”

Green bonds are financing instruments that earn the special green designation because the proceeds are earmarked for environmentally friendly or sustainable projects. LMU is the first university to sell green bonds through the California Educational Facilities Authority.

The new student housing, which will replace several older dormitories at LMU, will feature energy-efficient design and construction expected to qualify for LEED Silver certification. The buildings will be constructed in accordance with the university’s Master Plan, a development agreement between LMU and the city of Los Angeles that was approved in 2011, according to a university spokesman.

“LMU has always strived to make our campus as environmentally responsible as possible, and by selling green bonds, we’re expanding that undertaking to include our financing, as well,” said Caroline Wilhelm, the university’s treasurer. “While it’s exciting to take this step, it’s also a path LMU knows well.”

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