Permian Basin-focused Solaris Midstream Holdings Inc. said it has completed offering $400 million in senior unsecured notes for the first sustainability linked bond (SLB) in the produced water infrastructure industry.

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The Houston-based operator, parent company to Solaris Water Midstream LLC, said the notes were a “landmark issuance.” SLBs, which are used for general corporate purposes, underpin environmental, social and governance (ESG) performance indicators. These types of bonds may enable issuers to scale up decarbonization efforts and attract a broader range of investors interested in ESG initiatives.

The transactions “are transformative for Solaris Water on multiple levels and recognize our sustainability efforts to date, positioning us to deliver significant value to...