Business

EDC Releases Canadian Business Journal, an Innovative Sustainable Fixed Income Framework

Ottawa, March 28, 2022 (GLOBE NEWSWIRE) — Export Development Canada (EDC) is a new sustainable bond reviewed by a third party to enhance support for initiatives to create a more equitable and sustainable world. Released the framework. Currently, in addition to green bonds, EDC issues sustainable social and transitional bonds.

Ken Kenberg, Senior Vice President and Chief Financial Officer of EDC, said: “These bonds are an important tool for raising the funds needed to support these transactions.”

EDC has been issuing green bonds since 2014 and is the first financial institution to issue in Canada. The funds raised by these green bonds fund nearly 30 transactions worth over $ 2 billion in various sectors, each contributing to environmental protection or climate change mitigation.

Green bonds remain an important part of the new framework, and EDC is strengthening its focus on climate change by adding transitional revenues that North American financial institutions have never included in the fixed income framework. increase. These bonds are specifically aimed at facilitating the transition to a low-carbon economy.

“Transitional bonds could help address climate change by providing loans related to activities that significantly reduce greenhouse gas emissions,” said EDC Senior Vice President and Sustainable Company. Justin Hendrix, the sexual officer, said. “In line with our commitment to zero emissions by 2050 as the urgency and impact of climate change grows, we define and include transition bonds in our framework and do the same for others. I felt it was important to encourage them to do so. “

Another important new category of the framework is the social category, which aims to enable a more equitable society. These bonds can support businesses seeking affordable infrastructure, access to health and nutrition, and equity. These businesses are led or owned by women, indigenous peoples, blacks and other people in the racial community, people with disabilities, and members of the LGBTQ2 + community.

“We recognize that beyond environmental and social issues, we need to think of them as two separate things. They are closely related, and the transition to a low-carbon economy is the people, We also need to look at dealing with social inequality to support work and the community. Adding social bonds to the framework brings another tool to the toolbox on this very important challenge. It will be provided, “says Hendrix.

The new Sustainable Bond Framework aims to improve EDC’s environmental, social, governance (ESG) strategies, and Canada and the world, incorporating sustainable and responsible businesses in everything EDC does. It is an important element of 2030 corporate strategy. trade.

This framework was developed in close consultation with advisory partners, BMO Financial Group and RBC Capital Markets, in line with current best practices. EDC also obtained the opinion of a third party independent of Sustainalytics published on the EDC website.

BMO Financial Group
“We are working with Canada’s export development to build a sustainable fixed income framework, achieve ESG goals, and have Canadian companies in the world facing rapid climate change and its associated impacts. We are proud to be competitive. Jonathan Hackett, Head of Sustainable Finance and Co-Head, Energy Transition Group, BMO Financial Group, said: “Working with clients like EDC to make the transition: We are embarking on incorporating our earnings into our framework to show how we are fulfilling our goal of bold growth in business and life. “

RBC Capital Markets
“RBC Capital Markets is proud to work with the Canadian Export Development Authority to help realize this timely and important sustainable fixed income framework. EDC is the first Canadian finance to issue green bonds. An institution and currently one of the first financial institutions to incorporate transitional lending into its framework. RBC is to advance the sustainable fixed income market to support a more inclusive and sustainable future. We are committed to providing the advice and solutions we need, “said Sala Thompson, Managing Director of Sustainable Finance at RBC Capital Markets.

Related Documents

EDC’s Sustainable Bond Framework

About EDC

Export Development Canada (EDC) is a financial royal company aimed at helping Canadian companies of all sizes succeed on the global stage. As an international risk expert, we provide Canadian companies with the tools they need (trade knowledge, financing solutions, equities, insurance, connectivity) to grow their business with confidence. Underlying all of our support is our commitment to a sustainable and responsible business.

For more information and how we can assist your company, please call 1-800-229-0575 or visit www.edc.ca.

Media contacts

media
Canada export development
1-888-222-4065
media@edc.ca


CBJ News Maker

EDC Releases Canadian Business Journal, an Innovative Sustainable Fixed Income Framework

Source link EDC Releases Canadian Business Journal, an Innovative Sustainable Fixed Income Framework

Related Articles

Back to top button