SOUTH HADLEY — MassDevelopment has issued a $154.7 million tax-exempt bond on behalf of the trustees of Mount Holyoke College.

The bond, announced Monday, will pay for geothermal energy, renovations to its residence halls and key academic buildings, and also will allow the college to refinance old debt, MassDevelopment said in a statement.

"This is an investment in the future of Mount Holyoke College as a leading academic institution and contributor to the Western Massachusetts economy," said Economic Development Secretary Eric Paley, who serves as chair of MassDevelopment's board of directors, in the statement.

The bond allows Mount Holyoke to borrow at a lower interest rate. It's been sold to TD Bank.

The geothermal system will replace a 100-year-old fossil-fuel heating system.

In a project update posted online , Mount Holyoke said the system's geo-field is nearing completion, and drilling was to have wrapped up this month.

In June, Mount Holyoke paused its plans to build a geothermal energy hub near downtown homes, stores and a church. Neighbors of the Woodbridge Street and Dunlap Place site complained .

MassDevelopment is the state's development finance agency and land bank. The agency financed or managed 409 projects in fiscal 2025, generating investment of more than $4.65 billion in the Massachusetts economy.

These projects are estimated to create or support 25,246 jobs, and build or preserve 2,867 housing units, the agency said.

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