The Government of Canada announced the appointment of HSBC and TD Securities as structuring advisors for the government’s upcoming inaugural issue of green bonds.
In its April budget, the government announced plans for its first issue of sovereign green bonds, targeting a capital raise of $5 billion towards the country’s climate and environmental goals, which include achieving net zero emissions by 2050, and a 40-45% reduction in emissions by 2030. In May, the government launched a new Sustainable Finance Action Council, aimed at helping mobilize capital and investment necessary to meet the country’s sustainability goals by bringing together public and private sector financial expertise to support the growth of a strong, well-functioning, sustainable finance market.
As structuring advisors, HSBC and TD will provide advice on the design of Canada’s green bond framework, assist in the development of the ongoing program and support the inaugural issuance.
Bob Dorrance, Chairman, CEO and President, TD Securities, said:
“As Canada advances its climate and sustainability goals, the development of a green bond program represents a significant milestone in this journey. We’re well-positioned to provide trusted advice and support to our clients, like the Government of Canada, as they access financial markets and work towards achieving their sustainability objectives.”
With the issuance of its initial green bond, the Canada will join the rapidly growing sustainable sovereign debt market. The UK announced in March plans to issue at least £15 billion of green gilt this year, and other countries including Italy and Germany also recently issued their first green bonds. The European Union is set to become a central region for sovereign sustainable finance, with 30% of the European Commission’s €750 billion NextGenerationEU multi-year recovery budget earmarked to be finance through green bonds.
Linda Seymour, President and CEO, HSBC Bank Canada, said:
“We are honoured to support the Government of Canada on this important step towards meeting their climate ambitions, as we have done for the inaugural sovereign green bond programs of the U.K., Poland, the Netherlands, Chile, Korea and Hong Kong. We have been at the forefront of green bond issuance here in Canada since 2014, supporting provincial governments through multiple green bond issuances. This is a major milestone as we all work together to deliver Canada’s recovery.”