STRONG DEMAND FOR ONTARIO’S FIRST GREEN BOND

NEARLY $2.4 BILLION IN ORDERS FOR THE $500 MILLION OFFERING

Ontario has successfully launched a green bond program with a bond issue of $500 million, making it the first government in Canada to issue green bonds.

There was strong demand for Ontario’s first green bond, with orders approaching $2.4 billion from green investors in Canada as well as in the United States, Europe and Asia.

This first issue secures Ontario’s presence in the green bond market and brings visibility to the province by encouraging investments in sustainable projects and attracting new investors.

Ontario’s green bond program will help finance transit and other environmentally-friendly infrastructure projects across the province, supporting job creation and strengthening the economy. The Eglinton Crosstown LRT has been selected as the green project that will receive funding from the inaugural issue.

The province’s green bond program is part of the government’s economic plan for Ontario.  The four-part plan is building Ontario up by investing in people’s talents and skills, building new public infrastructure like roads and transit, creating a dynamic, supportive environment where business thrives, and building a secure savings plan so everyone can afford to retire.

QUICK FACTS

• The four-year green bond issue was available through Ontario’s current dealer group to Canadian and international institutional investors to help establish a Canadian-dollar green bond market.
• Pioneered by the World Bank in 2008, green bonds are a tool to raise capital for a project with specific environmental benefits.
• Ontario’s 2014 Budget committed more than $130 billion in infrastructure over the next 10 years.
• The Eglinton Crosstown LRT will provide environmental benefits to the region and is the largest transit expansion project in Toronto’s history. Currently under construction, the completion date is 2020.