The City of Vancouver has issued the first sustainability bond by a Canadian government entity. The $100 million bond will fund environmentally and socially sustainable initiatives and projects.

The city stated the bond was very well received by the investment community, with demand of approximately four times the issuance size.

Under the city’s Sustainability Bond Framework, net proceeds are used to finance council-approved capital projects that support its commitment to positive environmental goals, social responsibility and economic development.

Projects approved under the city’s current capital plan and eligible for funding under the sustainability bond include:

Fire Hall 12 seismic upgrades 

• Supports access to public fire and emergency response, given this fire hall covers a relatively large residential and commercial area in the city. Building improvements will also positively improve energy performance and reduce carbon emissions.

Renewal of Sunset Service Yard

• This renewal will help reduce carbon emissions and help meet zero emission building targets. The yard provides essential services including supporting green space maintenance across the city.

The bond pays a 2.3 per cent coupon interest rate and matures on Nov. 5, 2031.

“Social, economic and environmental sustainability are long-term values that are championed through a wide range of city strategies and initiatives,” said Patrice Impey, chief financial officer. “Sustainability bonds offer an investment tool that will support the city’s efforts to build sustainable infrastructure for many generations to come.”