Finance
Canada to Sell Green Bond as Push to Exit Oil Rises Amid War
- Fossil fuels are excluded from the bond’s use of proceeds
- Canada is marketing C$5 billion of bonds due in December 2029
Wind turbines in Shelburne, Ontario.
Photographer: James MacDonald/BloombergThis article is for subscribers only.
Canada started taking orders for its inaugural green bond amid a renewed global push to reduce dependence on fossil fuels after the Russian invasion of Ukraine brought reliance on non-renewable sources of energy back into the spotlight.
The world’s fourth largest oil and fifth biggest natural gas producer is marketing C$5 billion ($4 billion) of December 2029 bonds which may yield 2.5 basis points over the Canada bond due June 2029, according to people with knowledge of the matter. The transaction is expected to be priced as soon as Tuesday and dealers have already gathered orders totaling over C$9.5 billion, said the people.