The Department of Finance announced a plan to re-open its second green bond this week.
The federal government made the announcement in a news release Tuesday, adding that the re-opening of the bond is subject to market conditions. According to the Department of Finance, the intent is to continue with two transactions in the 2024-2025 fiscal year to meet a target for green bond issuances the government outlined in its 2024 budget. The bond’s re-opening on Tuesday will mark one of the transactions, the release said, and another will take place “at a later date.”
“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 comes after the issuance of a 10-year $4 billion green bond in February, which the government said saw “robust investor demand” noting the final order book totalled $7.4 billion.
The Department of Finance highlighted that the issuance in February was the second green bond issued by the federal government, the first being a 7.5-year $5 billion green bond in March 2022.
“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 said.
“Green bonds unlock private financing to speed up projects such as green infrastructure and nature conservation.”