This week, the Government of Canada successfully priced its third new issuance of Canadian-dollar-denominated green bonds. This $2 billion issuance of a 7-year bond is part of a commitment to regular green bond issuances. This issuance is the fourth offering of Canadian-dollar-denominated green bonds following the prior issuances of a 10-year, $4 billion green bond in February 2024, which was re-opened in October 2024 for an additional $2 billion, and Canada's first 7.5-year, $5 billion green bond in March 2022.
The government's intent was to proceed with two smaller green bond transactions in fiscal year 2024-25-the October 2024 re-opening of the February 2024 bond, and now this separate offering-to meet the planned issuance outlined in Budget 2024.
This issuance is the third offering 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 issuance saw robust demand from environmentally and socially responsible investors who represented a majority of buyers (57 per cent). The final order book stood at over $3.1 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.
