Telus, Enbridge Greenium Boosts Sustainability-Linked Bonds

  • Asset class could become ‘new normal’ in Canada: investor
  • Enbridge may issue SLB in loonies after U.S. dollar sale
Photographer: Brent Lewin/Bloomberg
Lock
This article is for subscribers only.

Sales of sustainability-linked bonds out of Canada are poised to take off after two first-time issuers showed companies can tap lower borrowing costs than conventional securities.

Telus Corp., which sold C$750 million ($606 million) of SLBs last week, saved about 6 basis points versus the cost of selling conventional debt, said Stephen Lewis, senior vice president & treasurer at the telecom firm. Oil pipeline operator Enbridge, which sold $1 billion of the bonds last week, realized a so-called greenium of at least 5 basis points, Max Chan, the company’s vice president of treasury, said in an interview last week.