This week, the Government of Canada successfully issued its second green bond. This 10-year, $4 billion green bond fulfills the government's commitment in the 2023 Fall Economic Statement to issue a $4 billion green bond in the 2023-24 fiscal year.
This issuance is the first under Canada's updated Green Bond Framework, which was released on November 21, 2023, and made certain nuclear energy expenditures 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 nuclear leader.
Canada's second green bond offering saw robust demand from environmentally and socially responsible investors who represented a majority of buyers (66 per cent), as well as from international investors, who made up over 33 per cent of the investor base. The final order book stood at over $7.4 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.
