A Vancouver-based Vancouver City Savings Credit Union (Vancity) subsidiary is providing $1 million in financing to accelerate the development of green bonds from Montreal-based CoPower Inc.
Vancity Capital Corp. is contributing to a revolving credit facility that will provide CoPower, a clean energy investment platform, with flexible capital to finance clean energy projects, according to an announcement on Thursday. The credit union is also the first mainstream financial services institution to provide financing to CoPower.
“This marks the start of an exciting relationship between Vancity Capital and CoPower, and a unique opportunity to build on our impact investment mandate,” says Christine Bergeron, vice president of impact investing, wealth management and community real estate with Vancity, in a statement.
CoPower will use the available funds from the credit facility to make senior, secured loans to clean energy products that satisfy specific investment criteria and generate revenue from energy savings or renewable energy production. The loans will then be resold as green bonds to Canadians. Proceeds from the sale of the bonds will purchase the portfolio of loans, which replenishes the credit facility and makes funds available for new projects.
“Vancity Capital Corp.’s infusion of capital allows us to make initial loans to clean energy projects. Bondholders enter the picture only once we can point to specific clean energy projects they can see and understand,” says Trish Nixon, director of investments at CoPower, in a statement.
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