University of Pennsylvania
IN-3: Innovation 3

In March 2013, Penn issued its first 100-year bond, also called a century bond, for $300 million at an interest rate of 4.67%. Of this, $200 million is allocated for 32 lighting and 17 heating-ventilation-air-conditioning (HVAC) energy conservation projects for 40 to 50 buildings on Penn's campus. This includes projects as small as replacing fluorescent lights with LEDs to replacing larger HVAC control systems to increase efficiency.

Penn Facilities and Real Estate Services has estimated that the initial investments for the lighting projects will pay for themselves in eight years through the cost-reduction savings alone; for the HVAC projects, in 18 years. The cost savings translate directly to energy savings, as the more efficient systems will require much less energy to operate. The remaining bond funds will be invested or used as internal loans for "strategic priorities" such as non-energy related building renovations. The century bond's interest will be paid through energy savings, the internal loan interest, and the return on the invested funds.

Philly.com Article
http://www.philly.com/philly/blogs/inq-phillydeals/Energy-bond-Penn-borrows-for-100-years-plans-payback-in-10.html

Daily Pennsylvanian Article
http://www.thedp.com/article/2012/11/penn-using-some-money-from-century-bond-for-facilities

Green Campus Partnership Article
http://www.upenn.edu/sustainability/news/century-bond-projects-move-forward

Penn Gazette
http://www.upenn.edu/gazette/0712/gaz03.html