Toronto-Dominion Bank (TD) closed on the issuance of a US$1-billion green bond, its first in U.S. dollars and one of the largest green bonds ever issued by a bank.

Initially targeting an issue size of US$500 million, the transaction was upsized to US$1 billion and almost 70% of the issue went to green investors.

“We are thrilled with the response to our inaugural U.S dollar green bond issue, one of the largest from a financial institution,” says Amy West, head of socially responsible finance with TD Securities.

TD is not new to green bonds as it has already participated in underwriting more than $6.5-billion in green bonds since 2010 and was the first Canadian bank to issue a green bond in 2014.

“We are seeing an exciting level of growth in the green bond market as investors recognize the opportunities associated with the transition to the low carbon economy,” adds Karen Clarke-Whistler, chief environment officer with TD Bank Group. “Participating in the green bond market is core to TD’s low carbon business strategy and the success of our second green bond highlights the unique opportunity for financial institutions.”