California invests in 'green' bonds
California is buying $400 million worth of so-called green bonds from the World Bank.
The purchase is a good deal for the state's taxpayers and also for financing of needed environmental projects in dozens of countries, state Treasurer Bill Lockyer said.
The short-term bonds, which mature on Dec. 16, 2013, will be used by the international financial institution to pay for reforestation, alternative energy and water purification projects, among others.
"These bonds are a great investment for California and its taxpayers," Lockyer said. "We're earning an excellent return, strengthening our portfolio and backing our policies with money in the fight against global warming."
The bonds have a 0.51% yield, roughly double the current rate on two-year U.S. Treasury bonds, 0.26%, Lockyer said.
The purchase is the state's second since April 2009, when California became the first U.S. buyer of the international green securities, acquiring $300 million worth in an investment that matures next April.
The bonds were bought by the state Pooled Money Investment Account, which manages $65 billion for the state, local governments and school districts.
-- Marc Lifsher
Photo: A solar power plant in the Mojave Desert. Credit: PBS photo