The government of B.C. announced on Wednesday the first successful issuance of a “green bond” in Canada to finance new hospital construction.
B.C. says that the 32.3-year bond, which was issued by Tandem Health Partners and raised about $231.5 million, is the first time a green bond has been used to fund a public-private partnership project in North America, and the first time a green bond has been issued to finance public infrastructure in Canada. The deal was underwritten by Montreal-based National Bank Financial and Toronto-based Bank of Nova Scotia.
The province reports that the issue was oversubscribed and that buyers were well distributed across insurance companies and fund managers. “Green bonds are just one more example of how B.C. is leading the way in developing innovative ways to help fund public infrastructure, adding another dimension of social and environmental responsibility for projects,” said Michael de Jong, B.C.’s minister of Finance.
The group of private investors that issued the bond, Tandem Health Partners, is charged with completing the North Island Hospitals Project, which includes a couple of new hospitals. The project has beenassessed as green by Altus Group Ltd., an industry consultant and technical advisor for public- and private-sector infrastructure projects. The criteria for assessing the project as green include environmental building certification, and energy and greenhouse gas targets.