Export Development Canada prices third Green Bond, responding to rising global interest in climate financing

Export Development Canada (EDC) priced USD 500 million 1.625% Fixed Rate Green Bond due June 1, 2020. The lead underwriters were HSBC, J.P. Morgan and SEB. This offering is scheduled to close on June 1, 2017.

This is EDC’s third Green Bond, with previous bonds of 300M in January 2014 and 300M in December 2015, each receiving strong support from the green bond investor community.

“This is our largest Green Bond yet, which reflects the increasing demand for sustainable investment products within the international capital markets community,” said Ken Kember, Senior Vice President and Chief Financial Officer, EDC. “Green Bonds are just one example of EDC’s contribution to international climate change objectives, and our alignment with broader industry trends towards low carbon and climate-resilient technologies.”

The proceeds of this Green Bond offering will go towards EDC’s portfolio of green assets, including loan assets made to companies that are active in fields of preservation, protection or remediation of air, water, and/or soil, creation of renewable energy and mitigation of climate change.

“Combatting climate change by supporting clean technologies is a strategic priority for EDC,” said Kember. “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.”

Examples of the transactions and projects related to EDC’s Green Bond program include:

Company/Project: Northland Power/ Nordsee One GmbH
Sector: Renewable energy
Location: Germany
Description: Development and operation of wind farm consisting of 54 wind turbine generators located in the North Sea.

Company/Project: BioAmber
Sector: Biochemicals and biomaterials
Location: Canada
Description: Construction and operation of the largest succinic acid plant in the world, with a carbon neutral footprint and a production process that employs renewable feedstock.

Company/Project: Brookfield Renewable Partners
Sector: Renewable energy
Location: Ireland
Description: Support related to the acquisition of existing, operating wind power assets, located in several separate locations across Ireland.

Company/Project: GoldLinQ
Sector: Public Ground Transport
Location: Australia
Description: Extension of an existing light rail transit system and supporting infrastructure, to reduce automobile traffic and vehicle emissions.

Next Finance May 2017



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