Export Development Canada (EDC) Issues Its Sixth Green Bond at USD$1 Billion
June 20, 2024
In an effort to support a low-carbon future, Export Development Canada (EDC), Canada’s export credit agency, has issued a USD$1 billion green bond. The bond will attract capital for climate-focused investments and help progress EDC’s sustainable finance efforts.
This is EDC’s first bond issued under its Sustainable Bond Framework, which it released in 2022 to enable greater financial support for initiatives that create a more equitable and sustainable world. This is an evolution of the Green Bond Framework, under which we have been issuing green bonds since 2014, adding categories for social and transition bonds.
“With the increasing demand for sustainable investments, EDC is an important source of financing for the innovative companies and projects that are addressing major global issues like the climate crisis,” said Scott Moore, Executive Vice-President, Finance and Chief Financial Officer, EDC. “With the issuance of this latest bond, we hope to bring more international investors to the table to further stimulate the growth of the green bond market and bring more capital to Canada to support climate investments.”
This is EDC’s fourth green bond in U.S. dollars and its sixth green bond overall. Previous bonds issued include CAD$500 million in August 2019, CAD$500 million in August 2017, USD$500 million in May 2017, USD$300 million in December 2015 and USD$300 million in January 2014. Each bond received strong support from the investor community.
Proceeds of all EDC’s green bond offerings go toward EDC’s portfolio of green assets, including loans made to companies active in clean transportation, renewable energy, energy efficiency, pollution prevention and sustainable water management. The proceeds from our prior issuances have so far helped finance approximately 50 transactions across a range of sectors focused on mitigating climate change and minimizing environmental impact.
EDC’s green bond has a fixed rate coupon of 4.75% and it matures June 5, 2034. The lead underwriters were BMO Capital Markets Corp., BNP Paribas, J.P. Morgan Securities Plc, and RBC Capital Markets, LLC. This offering settled on June 5, 2024.
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