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Canada raises 2 billion Canadian dollars in its seventh green bond

Canada completed pricing of its seventh green-bond sale, raising 2 billion Canadian dollars with a new ten-year offering. Orders exceeded 3.6 billion Canadian dollars, while environmentally and socially responsible investors accounted for 44 per cent of buyers. The sale lifts the programme’s cumulative issuance to 19.5 billion Canadian dollars. Proceeds support eligible environmental spending under the federal green-bond framework.

Economics & Markets··Midday
A Canadian flag beside a solar panel array and wetland.

The ten-year sale raises 2 billion Canadian dollars

Canada completed pricing of its seventh green-bond issuance, raising 2 billion Canadian dollars in a new ten-year offering. The federal Department of Finance announced the completed sale on 9 October. The money supports eligible environmental spending through Canada’s green-bond programme.[1], [2]

The final order book exceeded 3.6 billion Canadian dollars. Environmentally and socially responsible investors made up 44 per cent of buyers. The latest offering brings cumulative federal green-bond issuance since March 2022 to 19.5 billion Canadian dollars.[1]

The bond programme finances infrastructure and nature conservation

The pricing follows an issuance plan announced on 7 October. The government uses the programme to draw private capital into green infrastructure and nature conservation. The Department of Finance says sovereign green bonds also provide a pricing benchmark for other borrowers and help develop the country’s sustainable finance market.[1]

Eligible spending is tracked through allocation and impact reports

Canada updated its framework in November 2023 to include certain nuclear expenditures. In April it released an allocation and impact report. Annual reporting continues until net proceeds are fully allocated. Allocation reports identify the eligible expenditure financed by the bonds, while impact reports describe environmental benefits and related social effects where data are available.[1]

References

  1. News sourceDepartment of Finance CanadaCanada raises C$2 billion in seventh green bond offering↩1↩2↩3↩4
  2. News sourceDow Jones Newswires (MarketScreener)Canada raises 2 billion Canadian dollars through seventh green bond↩
Central banks and the rate cycleEnergy transition and climate

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