The Government of Canada is announcing its plan to issue its third Canadian-dollar-denominated green bond this week, subject to market conditions.
This follows the successful issuance of a 10-year, $4 billion green bond in February 2024, which was re-opened in October 2024 for an additional $2 billion. Both saw robust investor demand as demonstrated by final order books of more than $11 billion combined. The February 2024 issuance was the government's second green bond, following the successful issuance of Canada's first 7.5-year, $5 billion green bond in March 2022.
This week's issuance will be the second of two transactions in fiscal year 2024-25-the October re-opening and this separate offering-to meet the planned green bond issuance target outlined in Budget 2024.
This offering will be the third under Canada's updated Green Bond Framework, released on November 21, 2023. Canada is the first sovereign borrower to include certain nuclear expenditures in a green bond, demonstrating Canada's commitment to being a global leader in clean nuclear power.
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. Green bonds unlock private financing to speed up projects such as green infrastructure and nature conservation.
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.
