Canada successfully prices green bonds to raise $2.5 billion

From: Department of Finance Canada

News release

October 14, 2025 – Ottawa, Ontario – Department of Finance Canada

Last week, the Government of Canada successfully priced its fifth issuance of Canadian-dollar-denominated green bonds, including $1 billion in a new 30-year bond and a $1.5 billion re-opening of its 7-year bond issued in February 2025.

Last week’s issuance of a 30-year bond saw robust demand from environmentally and socially responsible investors who represented a strong majority of buyers (86 per cent). The final order book stood at over $1.9 billion. For the re-opened 7-year bond, environmentally and socially responsible investors made up 31 per cent of buyers, and the order book stood at over $3.6 billion. To date, 46 per cent of Canada’s 7-year green bond has been placed with environmentally and socially responsible investors at time of issuance, including the previous issuance in February 2025.

Government of Canada green bond issuances support Canada’s sustainable finance market by providing a sovereign benchmark for the rest of the market, and high-quality environmental, social, and governance (ESG) assets for investors, backed by Canada’s AAA credit rating. Green bonds unlock private financing to speed up projects such as green infrastructure and nature conservation. Green bond projects will grow Canada’s economy and create more jobs across the country.

Quick facts

  • The strong investor appetite for this issuance reflects Canada’s strong economic and fiscal management, AAA credit rating and commitments to fight climate change and protect the environment.

  • Last week’s offerings increase the total amount of green bonds issued by the Government of Canada since March 2022 to $15.5 billion. This week’s transaction was also the government’s first offering of a 30-year maturity green bond, which was well received by investors. 

  • On November 21, 2023, the Government of Canada released an updated Green Bond Framework that includes certain nuclear energy expenditures, in line with the government’s position that nuclear power is a vital, clean technology for Canada’s path to net-zero emissions by 2050, as well as to align with updated taxonomies, international best practices, and evolving investor preferences. Canada is the first sovereign borrower to issue a green bond including certain nuclear expenditures, demonstrating Canada’s commitment to being a global leader in clean nuclear power.

    • Activities selected as eligible expenditures under Canada’s Green Bond Framework are based on best practices followed by other sovereign green bond issuers. Canada is closely monitoring the international green bond market and similar frameworks being implemented by other countries and jurisdictions.

  • In June 2025, the government released the Green Bond Allocation and Impact Report 2023-24. Canada releases allocation and impact reports for investors and interested parties on an annual basis until full allocation of the net proceeds is achieved. These allocation reports detail the green eligible expenditures funded with the proceeds of each bond, while impact reports outline the environmental benefits of the expenditures and related social impacts where data is available.

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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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2025-10-14