Canada Raises $2 Billion Through New 7-Year Green Bond

The Government of Canada has issued a $2 billion Canadian-dollar-denominated green bond with a 7-year term. This marks the third issuance of such bonds by the federal government. Previous issuances include a $4 billion 10-year bond in February 2024, which was subsequently re-opened in October 2024 for an additional $2 billion, and a 7.5-year, $5 billion inaugural green bond in March 2022.

The latest bond issuance is in accordance with Canada's updated Green Bond Framework. Notably, it includes certain nuclear energy expenditures, marking the first time a sovereign borrower has done so. According to the government, 57% of the investors are those with a focus on environmental and social responsibility.

Investor interest was strong, with the government reporting that the final order book exceeded $3.1 billion. This reflects a considerable demand for environmentally conscious financial instruments within the specified framework.

Further insights or data regarding the broad economic impact of this issuance are not included in the announcement made by the government.