The Toronto-Dominion Bank has introduced a bond dedicated to funding green initiatives.

On Friday, the bank (TSX:TD) launched the $500 million TD Green Bond maturing on April 3, 2017.

Through the TD Green Bond, the bank will now be able to offer investors an investment vehicle that supports environmental mandates while providing a market rate of return.

“The green bond market is at the relatively early stages of evolution,” says Patrick Meneley, vice chairman, investment banking, TD Securities, executive vice president, TD Bank Group. “This first-to-market issuance by TD — in Canada — helps to further develop the green bond market for investors.”

“We’re proud to deliver a product that supports our commitment to environmental leadership, which is underscored by our becoming — in 2010 — the first North-American-based carbon neutral bank. TD Securities has been underwriting World Bank Climate Bonds since 2009,” says Karen Clarke-Whistler, chief environment officer, TD Bank Group.