National Bank issues three-year sustainable bond

National Bank of Canada introduced its first green bond on Wednesday.

Net proceeds from the $750 million three-year sustainable bond will fund future or existing eligible projects in green and social assets, the bank said in a release.

The bond will focus primarily on hydro power, social housing and daycare centres, but other eligible investment categories include renewable energy, sustainable buildings and access to basic and essential services.

National Bank launched the first integrated sustainable bond framework in Canada in September 2018. The new sustainable bond offering makes National Bank the first North American bank to issue a sustainable bond in U.S. dollars on the international stage, the release said.

National Bank is a signatory to the United Nations Principles for Responsible Banking. A third of the global banking sector signed onto the initiative last month, but only two were from Canada.

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