Canadian EDC unveils USD-300m green bond offering

Trade finance agency Export Development Canada (EDC) said Tuesday it will issue USD 300 million (EUR 282.8m) of green bonds in order to respond to growing demand for sustainable investments on the international capital markets.

EDC plans to use the proceeds to support its pipeline of green projects in various ways, such as loan assets made to companies involved in preservation, protection or remediation of air, water and soil, as well as in the utilisation of renewable energy and the mitigation of climate change. For instance, the programme will cover biofuels and bioenergy schemes in Canada, the Netherlands and Brazil.

“Encouraging environmental sustainability and the development of Canadian cleantech companies is a core part of EDC's business,” senior vice president, Ken Kember, noted.

The 1.25% fixed-rate green bonds are due December 10, 2018, according to the press release. BofA Merrill Lynch, Credit Agricole CIB and Morgan Stanley will serve as lead underwriters of the issue, which is scheduled to close on December 8, 2015.

The current tranche is EDC’s second green bond placement. The initial one was conducted in January 2014.

(USD 1.0 = EUR 0.943)

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