The Massachusetts School Building Authority announced on June 26 that it will be the first municipal issuer in the Commonwealth of Massachusetts to use the Social Bond designation in this week’s transactions.

The MSBA has designated the 2020 Bonds Series A and B bonds as “social bonds,” appealing to those investors seeking investment opportunities that comport with the United Nations’ Sustainable Development Goals and Social Bond principles.

The MSBA has determined that the school facilities to be financed and refinanced with the proceeds of the Series 2020 bonds are “social projects” based on the social benefits of ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all.

“The MSBA is a mission-driven organization committed to ensuring that our kids have access to the 21st century learning environments that will help them succeed,” said State Treasurer Deborah Goldberg, chair of the MSBA. “These bonds will create opportunities and invest in positive social change.”

Goldberg said the plan will benefit the financial sustainability of the MSBA Capital Program while maximizing the amount of funds available to fund projects going forward. The transaction will also result in a significant amount of savings on previously issued debt benefitting Massachusetts taxpayers.

Additionally, the MSBA’s reimbursement formula fits and reflects the Social Bond principles of using poverty factors in the reimbursement and consideration of incentives for smart growth principles, such as regional schools, green school buildings and overlay zoning districts.