VANCOUVER – Vancouver made history by issuing the country’s first sustainable bond issue worth $ 100 million to fund environmentally and socially sustainable initiatives and projects.
This is the first time that a sustainability bond has been issued by a Canadian government entity.
City officials said the bond had been very well received by the investment community with demand roughly four times the size of the issue.
As part of the city’s Sustainability Bond Framework, the net proceeds are used to fund city council-approved capital projects that support its commitment to positive environmental goals, social responsibility and economic development.
Projects approved under the city’s current capital plan and eligible for funding under the Sustainability Bond include the seismic improvements to Fire Hall 12 and the renewal of Sunset Service Yard. The bond pays an interest rate of 2.3% and matures on November 5, 2031.
“Social, economic and environmental sustainability are long-term values that are championed through a wide range of city strategies and initiatives,” said Patrice Impey, Chief Financial Officer, in a press release. “Sustainable bonds offer an investment tool that will support the city’s efforts to build sustainable infrastructure for many generations to come. “