Export Development Canada (EDC) today 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.
The Centre for International Climate and Environmental Research (CICERO), an independent research centre associated with the University of Oslo in Norway, endorsed EDC’s Green Bond Framework.
In connection with any public offering in the United States by EDC of green bonds, EDC has filed a registration statement (including a prospectus) on Form S-B with the SEC for the offering to which this communication relates. Before you invest in any such offering, you should read the prospectus in that registration statement and other documents EDC has filed with the SEC for more complete information about EDC and this offering. You may get these documents free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, in connection with any such offering, EDC, any underwriter or any dealer will arrange to send you the prospectus if you request it by calling EDC at (613) 598-2800.
This press release shall not constitute an offer to sell or the solicitation of any offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
