SDG Impact bond to reach financial close on California State University Fresno

University campus in a sunset


Meridiam has reached Financial Close for the Fresno Central Utility Plant P3 project, a 33-year project aiming to modernize and maintain Fresno State’s energy utility system.

To finance the Investment, Meridiam structured an innovative SDG-impact bond, directly linked to its ambitious objectives to reduce, by more than 30%, the utility system energy consumption.

This financial instrument not only benefits from Green Bond certification but is also directly related to its tangible and positive contribution to SDG impact. In practice, the interest rate of the bond will include financial penalties throughout the project life if the energy performance objectives are not continuously met.

Meridiam is grateful for the support of its partners and lenders to achieve this milestone with the CSU Fresno Campus and pave the way for SDG-inclusive financing at a time when, more than ever, financial benefits are expected to be balanced with extra-financial impacts, including:

  • Sustainable Development Goal 7 (Affordable and Clean Energy) and Sustainable Development Goal 13 (Climate Action): generating clean energy and reducing greenhouse gas emissions through the implementation of solar panels on campus.
  • Sustainable Development Goal 10 (Reduced Inequalities) with the target inclusion of 25% of local small business enterprises.


The contract — valued at about $600 million — addresses the campus hot- and chilled-water generation and distribution piping network providing more than 25,000 students, faculty and staff with energy-efficient and reliable heating and cooling. In addition to the construction of a new central utility plant, the project includes photovoltaic solar panels that will be built over existing campus parking lots to generate clean energy and energy conservation measures within buildings to reduce campus energy usage and carbon footprint.

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