CPPIB prices inaugural green bond valued at C$1.5 billion
Largest Canadian green bond issued to date
The Canada Pension Plan Investment Board (CPPIB) has announced final pricing for its inaugural green bond valued at C$1.5 billion. This is the largest Canadian green bond issued to date and marks a pioneering moment for CPPIB, as the first pension fund to issue a green bond. Highlights: C$1.5 billion 10-year issue; C$2.7 billion in demand; 79 buyers; largest green bond to be issued in Canada.
The sale will provide additional funding for CPPIB as it increases its holdings in renewables and energy efficient buildings as world demand gradually transitions in favour of such investible assets. "The issuance of green bonds is a logical next step for CPPIB's investment-focused approach to climate change, and we are pleased to be a pioneer among pension funds," said Poul Winslow, senior managing director and global head of capital markets and factor investing. "The capital raised will support strong, long-term investments in eligible green assets that position the fund for continued success."
CPPIB has announced plans over the past year to invest more than C$3 billion in the renewable energy sector. CPPIB has engaged the Center for International Climate Research (CICERO), a world leader in providing second opinions on the qualification of debt for green bond status.