Export Development Canada prices USD-500m green bond

Export Development Canada (EDC), Canada's export credit agency, last week priced a USD-500-million (EUR 449m) green bond.

This is EDC's third and largest green bond so far after two issuances of USD 300 million each in 2014 and 2015.

The body said its new 1.625% fixed-rate green bond due June 1, 2020 is in response to increasing global interest in climate financing. The funds will support EDC's portfolio of green assets, including loans to companies active in areas such as air, water and soil preservation, renewable energy and climate change mitigation.

EDC provided examples of projects related to its green bond programme, which include the 332-MW Nordsee One wind farm in the German North Sea, where Canada's Northland Power Inc (TSE:NPI) owns 85%. Another example was support to Brookfield Renewable Partners LP (NYSE:BEP) related to the acquisition of wind power assets in Ireland.

"Canadian companies have the expertise to be world leaders in the sector, which is why we're working hard to support the commercialization of these companies – so they can meet rising global demand for goods and services that allow for a more efficient use of the planet's resources," said Ken Kember, EDC senior vice president and chief financial officer.

The lead underwriters for the bond offering, which should close tomorrow, were HSBC, JP Morgan and SEB.

(USD 1 = EUR 0.897)

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