Canadian export credit agency, Export Development Canada (EDC), has priced its first Green Bond in Canadian dollars in response to global interest in climate financing.
Priced at CAD 500 million, the 1.80 per cent Fixed Rate Green Bond is due September 1, 2022. The lead underwriters were B of A Merrill Lynch, RBC Capital Markets, and TD Securities Inc. This offering is scheduled to settle on September 5, 2017.
This is EDC’s first Green Bond being issued in CAD and its fourth Green Bond in recent years, with previous bonds of USD 500 million in May 2017, USD 300 million in December 2015 and USD 300 million in January 2014, each received strong support from the green bond investor community.
“Climate change is a priority for EDC and being the first Canadian Crown corporation to issue a Green Bond in CAD demonstrates the increasing demand for sustainable investment products within the Canadian market,” said Ken Kember, senior vice president, finance, and chief financial officer, EDC. “EDC wants to bring our expertise and ability to issue bonds into the Canadian market as a way to attract domestic and international investors to the table and stimulate growth.”
The proceeds of this Green Bond offering will go towards EDC’s portfolio of green assets, including loan assets made to companies that are active in fields of preservation, protection or remediation of air, water, and/or soil, creation of renewable energy and mitigation of climate change.
“Green Bonds are just one example of EDC’s contribution to international climate change objectives and conscientious alignment with broader industry trends towards low carbon and climate-resilient technologies,” said Minister Francois-Philippe Champagne, Canada’s Minister of International Trade. “Canadian companies have the expertise to be world leaders in the sector and EDC’s effort to support the commercialization of these companies is critical to meet rising global demand coupled with a more efficient use of the planet’s resources.”
The Centre for International Climate and Environmental Research (CICERO), an independent research centre associated with the University of Oslo in Norway, endorsed EDC’s Green Bond Framework.
More information can be found on EDC’s website.