Canada to re-open 10-year green bond

From: Department of Finance Canada

News release

October 8, 2024 - Ottawa, Ontario - Department of Finance Canada

The Government of Canada is announcing its plan to re-open its second Canadian-dollar-denominated green bond this week, subject to market conditions.

This re-opening follows the successful issuance of a 10-year, $4 billion green bond in February 2024, which saw robust investor demand as demonstrated by a final order book of $7.4 billion. The February issuance was the government’s second green bond, following the successful issuance of Canada’s first 7.5-year, $5 billion green bond in March 2022.

The government’s intent is to proceed with two transactions in fiscal year 2024-25—today’s re-opening and a separate offering at a later date—to meet the planned green bond issuance target outlined in Budget 2024.

This offering will be the second under Canada’s updated Green Bond Framework, released on November 21, 2023. Canada is the first sovereign borrower to include certain nuclear expenditures in a green bond, demonstrating Canada’s commitment to being a global leader in clean nuclear power.

Canada’s green bond program is supporting the growth of the sustainable finance market in Canada, and around the world, and advancing Canada’s investments in clean growth, renewable energy, climate action, and environmental protection. Green bonds unlock private financing to speed up projects such as green infrastructure and nature conservation.

The Government of Canada’s green bonds will meet demand from investors seeking green investment opportunities backed by Canada’s AAA credit rating, while contributing to the development of a stronger sustainable finance market in Canada.

Quick facts

  • To support the growth of the sustainable finance market in Canada, in March 2022 the government launched the federal green bond program. Mobilizing capital through green bonds is an important element of Canada both meeting its 2030 emissions reduction targets and achieving net-zero emissions by 2050. Green bond projects will grow Canada’s economy and create more good-paying jobs across the country.

  • In March 2023, the government published its inaugural allocation report on the distribution of green bond proceeds, and an allocation and impact report in 2024. 

  • In November 2023, the Government of Canada updated its Green Bond Framework to make certain nuclear expenditures eligible, in line with the government’s position that nuclear power is vital, clean technology for Canada’s path to net-zero emissions by 2030, as well as updated taxonomies, international best practices, and evolving investor preferences.

  • Canada’s Green Bond Framework is aligned with the green bond frameworks of other sovereign issuers that have been widely accepted by green bond investors and market indices. Other sovereign green bond issuers include France, Germany, Sweden, Spain, Italy, and the United Kingdom.

  • Green bonds issued under the initial Framework continue under its parameters, and no proceeds from the first green bond issued in March 2022 will be allocated to nuclear related expenditures by the Government of Canada.

  • Sustainalytics, an independent environmental, social and governance (ESG) research group, concluded that Canada’s Green Bond Framework is a credible and transparent plan to deliver positive environmental benefits.

Associated links

Contacts

Media may contact:

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries:

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

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