City of Vancouver launches first sustainability bond offering of $100 million

THE City of Vancouver issued its first sustainability bond offering of $100 million on Monday to fund environmentally and socially sustainable initiatives and projects, while offering investors competitive returns.

This is the first sustainability bond issued by any Canadian government entity and was very well received by the investment community with demand of approximately four times the issuance size, the City added. 

“Social, economic, and environmental sustainability are long-term values that are championed through a wide range of City strategies and initiatives,” said Chief Financial Officer Patrice Impey. “Sustainability bonds offer an investment tool that will support the City’s efforts to build sustainable infrastructure for many generations to come.” 

Under the City’s Sustainability Bond Framework, net proceeds are used to finance Council-approved capital projects that support the City’s commitment to positive environmental goals, social responsibility, and economic development across our communities. 

Examples of projects approved in the City’s current capital plan and eligible for funding under the sustainability bond include: 

* Fire Hall 12 Seismic Upgrades: Supports access to public fire and emergency response, given this fire hall covers a relatively large residential and commercial area in the city. Building improvements will also positively improve energy performance and reduce carbon emissions.

 * Renewal of Sunset Service Yard: This renewal will help reduce carbon emissions and help meet zero emission building targets. The yard provides essential services including supporting green space maintenance across the city. 

The bond pays a 2.3 per cent coupon interest rate and matures on November 5, 2031. Visit the City’s web site to view the investor presentation. 

Vancouver’s credit ratings (AAA – S&P, Aaa – Moody’s) continue to be among the best municipal ratings in Canada, making its debentures an attractive investment in both domestic and international markets. 

For more on Vancouver’s Sustainability Debenture program, visit vancouver.ca/investors.