Ottawa – This week, the Government of Canada successfully re-opened its second Canadian-dollar-denominated green bond, following its initial issuance in February 2024. This $2 billion re-opening of a 10-year bond is part of a commitment to regular green bond issuances.
The government’s intent is to proceed with two smaller green bond transactions in fiscal year 2024-25—today’s re-opening and a separate offering at a later date—to meet the planned issuance outlined in Budget 2024.
This offering is the second under Canada’s updated Green Bond Framework, which allows for certain nuclear energy expenditures to be eligible for green bond proceeds. 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.
This week’s offering saw robust demand from environmentally and socially responsible investors who represented a majority of buyers (53 per cent). The final order book stood at over $3.8 billion.
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 good-paying jobs across the country.