Net proceeds from inaugural issue to support investment in environmentally sustainable projects
THE City of Vancouver has issued its first green bond offering of $85 million to fund environmentally sustainable initiatives and projects, while offering investors competitive returns.
“The City of Vancouver has set out an ambitious plan to be the greenest city in the world by 2020, and we have made big strides on a number of fronts,” said Vancouver Mayor Gregor Robertson on Wednesday. “Green bonds offer an environmental and social investment tool that will support the City’s efforts to build sustainable infrastructure for many generations to come.”
Under the City’s Green Bond Framework, net proceeds from green bonds will be 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.
Eligible capital projects include investments in renewable energy, energy efficiency, green buildings, clean transportation, pollution prevention and control, sustainable water and wastewater management, and environmentally sustainable management of living natural resources.
Some of the projects that were approved in the City’s capital plans and are to be funded by the green bond include:
- Fire Hall 17 Renewal – A new Net Zero Energy fire hall that will be Passive House and LEED Gold (v4) certified. Environmental benefits include reducing energy use from natural gas and electricity down to zero, along with reduced greenhouse gas (GHG) emissions and water consumption.
- Roddan Lodge Redevelopment – As part of the City’s priority to increase affordable housing stock, this project will contribute to Downtown Eastside housing targets by providing more than 200 social housing units. Environmental benefits include reducing energy use from natural gas and electricity, and reductions in GHG emissions and water consumption.
- Neighbourhood Energy Utility – This system, which has been operational since 2010, enables recycling of waste heat sources in the community and secures 100 per cent renewable energy outcomes for buildings connected to the system. Environmental benefits include significant GHG reductions for new building developments in the False Creek area.
The City’s inaugural $85 million green bond pays a 3.10 per cent coupon interest rate and matures on September 21, 2028. For more on the Green Debenture program, visit vancouver.ca/investors.