Ontario Launching Green Bonds to Fund Infrastructure Projects
Eglinton Crosstown LRT to Receive Up to $500 Million in Funding
Ontario is launching a green bond program in the coming weeks, making it the first government in Canada to issue green bonds.
The Eglinton Crosstown LRT has been selected as the green project that will receive funding from the inaugural issue, which is expected to be up to $500 million in size.
Ontario will make the first green bonds available through its current dealer group to Canadian and international institutional investors to help establish a Canadian-dollar green bond market and attract new investors.
Green bonds will help Ontario finance transit and other environmentally-friendly infrastructure projects across the province, supporting job creation and strengthening the economy. They will also capitalize on the province's ability to raise funds at low interest rates, and serve as a tool for the government to address critical infrastructure needs.
Ontario's green bonds are part of the government's plan to invest in people, build modern infrastructure and support a dynamic and innovative business climate.
- Ontario’s 2014 Budget committed more than $130 billion in infrastructure over the next 10 years.
- Pioneered by the World Bank in 2008, green bonds are a tool to raise capital for a project with specific environmental benefits.
- The Eglinton Crosstown LRT will provide environmental benefits to the region and is the largest transit expansion project in Toronto’s history. Currently under construction, the completion date is 2020.
“Our government is committed to building modern infrastructure, growing our economyand creating jobs. Ontario is taking a major step forward in planning for a greener, more sustainable future and is the only province in Canada to release a certified green bonds program. These attractive new bonds invest in transit and sustainable infrastructure, and they help fund livable and prosperous communities for all Ontarians. People are looking for new and innovative ways to invest in a secure and socially responsible manner. Ontario’s Green Bonds will help us to invest in transit, create jobs and raise capital at competitive rates.”
“This green bond investment demonstrates that our government is making progress on the province’s largest public transit construction project in more than half a century. The new Eglinton Crosstown LRT will help advance economic development, provide environmental benefits to the region and move commuters across the city quickly, reliably and conveniently.”
“This is a win-win for the people of Ontario and for the environment. Building the Eglinton Crosstown is vital infrastructure to the City of Toronto and the surrounding regional economy. I can think of no better investment in infrastructure than one that does double duty — helping both the economy and the environment.”
“Ontario became a leader in fighting against climate change as the first North American jurisdiction to eliminate coal powered electricity. We are proud that Ontario is also the first to develop a robust green bond program that helps achieve the province’s environmental and climate change goals while supporting the important infrastructure goals of our province and supporting Ontario's economy.”
Glen R. Murray
“Metrolinx is proud to be delivering the Eglinton Crosstown light rail transit project — a new and much-needed transit expansion project for the City of Toronto. The recognition of this green bond investment reinforces the important role transit plays in enabling people to make environmentally-friendly travel choices.”