BMO Financial Group assisted the government of Canada on the successful completion of its inaugural green bond transaction, acting as joint lead manager.
The C$5 billion ($3.9 billion) transaction demonstrates Canada’s environmental leadership, ensures government expenditures align with Canada’s ESG goals and principles and acts as a catalyst towards the continued development of the sustainable finance market in Canada. The Government of Canada recognizes sustainable finance plays a key role in accelerating the transition to a cleaner economy, and mobilizing capital is a critical part of Canada’s work to meet its 2030 emissions reduction target and achieve net-zero emissions by 2050.
Nearly 100 investors participated in Canada’s debut transaction, with final demand of more than C$11 billion ($8.7 billion). 45% of the transaction was distributed internationally, illustrating the strong appetite for CAD green bonds globally and a true testament to investors’ interest for Canada’s AAA credit rating.
The Government of Canada Green Bond Framework, developed in accordance with the International Capital Market Association’s (ICMA) Green Bond Principles (2021), defines the criteria for the use of proceeds from green bonds as those projects that will facilitate the transition to a low-carbon economy and contribute to the climate goals set out by the government.
“We’re proud to be a joint lead-manager on the issuance of the first Government of Canada Green Bond,” Jonathan Hackett, head of sustainable finance and co-head of the energy transition group at bmo financial group, said. “The establishing of a green financing program by the government will help to accelerate sustainable finance adoption in Canada and is strongly aligned with BMO’s climate ambition and our purpose to boldly grow the good in business and life.”