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The Department of Finance plans two green bond transactions this fiscal year to support clean growth
The Department of Finance has announced plans to re-open its second green bond this week, subject to market conditions, as reported by BNN Bloomberg.
The federal government stated that this move is part of a broader plan for two green bond transactions in the 2024-2025 fiscal year, a target outlined in the 2024 budget.
Tuesday’s re-opening marks the first of these transactions, with another scheduled to occur “at a later date,” according to the news release.
“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,” the Department of Finance said in the release.
The re-opening follows the issuance of a 10-year $4bn green bond in February, which saw “robust investor demand,” with the final order book reaching $7.4bn.
This February issuance was the federal government’s second green bond, following a 7.5-year $5bn green bond issued in March 2022.
According to the Department of Finance, “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.”
The release also emphasized that green bonds “unlock private financing to speed up projects such as green infrastructure and nature conservation.”