Government of Canada issues inaugural $5bn green bond

It is the largest Canadian-denominated green bond to date, aimed at helping to create new financing opportunities to accelerate projects ranging from green infrastructure to nature conservancy

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The Government of Canada has issued its first CAD$5 billion (£3bn) green bond following the publication of its Green Bond Framework last month.

It is the largest Canadian-denominated green bond to date, aimed at helping to create new financing opportunities that will accelerate projects ranging from green infrastructure to nature conservancy while fostering the development of Canada’s sustainable finance market.

The inaugural green bond supports Canada’s 2030 emissions reduction target as well as its goal of achieving net zero emissions by 2050.

Nearly 100 investors participated in Canada’s debut transaction, with final demand of more than CAD$11 billion (£6.7bn) and 45% of the transaction distributed internationally.

Chrystia Freeland, Deputy Prime Minister and Minister of Finance said: “The global economy is turning swiftly, decisively and irreversibly green. It is essential for the prosperity of the next generation of Canadians – and indeed, for those of us working today – for Canada to be at the forefront of this great transformation and sustainable finance is central to this objective.

“The strong demand for this inaugural green bond issuance – the first of many issuances to come – is a sign of Canada’s future as a sustainable finance leader. As we continue our government’s record investments in climate action, leveraging private investment will help us meet Canada’s 2030 emissions reduction target and achieve net zero emissions by 2050.”

Canada’s Green Bond Framework is aligned with that all other sovereign issuers, including France, Germany, Sweden, Spain, Italy and the UK, that have been widely accepted by green bond investors and market indices.