Canada successfully prices 7-year green bond to raise $2 billion

February 21, 2025 - Ottawa, Ontario - Department of Finance Canada

This week, the Government of Canada successfully priced its third new issuance of Canadian-dollar-denominated green bonds. This $2 billion issuance of a 7-year bond is part of a commitment to regular green bond issuances. This issuance is the

fourth offering of Canadian-dollar-denominated green bonds following the prior issuances of a 10-year, $4 billion green bond in February 2024, which was re-opened in October 2024 for an additional $2 billion, and Canada’s first 7.5-year, $5 billion green bond in March 2022.

The government’s intent was to proceed with two smaller green bond transactions in fiscal year 2024-25—the October 2024 re-opening of the February 2024 bond, and now this separate offering—to meet the planned issuance outlined in Budget 2024.

This issuance is the third offering under Canada’s updated Green Bond Framework, which allows for certain nuclear energy expenditures to be eligible for green bond proceeds. Canada is the first sovereign borrower to issue a green bond including certain nuclear expenditures, demonstrating Canada’s commitment to being a global leader in clean nuclear power.

This week’s issuance saw robust demand from environmentally and socially responsible investors who represented a majority of buyers (57 per cent). The final order book stood at over $3.1 billion.

Government of Canada green bond issuances support Canada’s sustainable finance market by providing a sovereign benchmark for the rest of the market, and high-quality environmental, social, and governance (ESG) assets for investors, backed by Canada’s AAA credit rating. Green bonds unlock private financing to speed up projects such as green infrastructure and nature conservation. Green bond projects will grow Canada’s economy and create more good-paying jobs across the country.

Quick facts

• The strong investor appetite for this issuance reflects Canada’s strong economic and fiscal management and AAA credit rating.

• On November 21, 2023 the Government of Canada released an updated Green Bond Framework that includes certain nuclear energy expenditures, in line with the government’s position that nuclear power is vital, clean technology for Canada’s path to net-zero emissions by 2050, as well as updated taxonomies, international best practices, and evolving investor preferences.

  • Activities selected as eligible expenditures under Canada’s Green Bond Framework are based on best practices followed by other sovereign green bond issuers. Canada is closely monitoring the international green bond market and similar frameworks being implemented by other countries and jurisdictions.
  • Sustainalytics, an independent environmental, social, and governance (ESG) research firm, again concluded that Canada’s Green Bond Framework is a credible and transparent plan to deliver positive environmental benefits.

• In August 2024 the government released the Green Bond Allocation and Impact Report 2022-2023. Canada will release allocation and impact reports for investors and interested parties following each green bond issuance on an annual basis until full allocation of the net proceeds is achieved. These allocation reports will detail the green eligible expenditures funded with the proceeds of each bond, while impact reports outline the environmental benefits of the expenditures and related social impacts where data is available.