VANCOUVER — The City of Vancouver has issued its first green bond offering of $85 million to fund environmentally sustainable initiatives and projects.
“The City of Vancouver has set out an ambitious plan to be the greenest city in the world by 2020, and we have made big strides on a number of fronts,” said Mayor Gregor Robertson in a press release. “Green bonds offer an environmental and social investment tool that will support the city’s efforts to build sustainable infrastructure for many generations to come.”
According to the release, the city’s green bond framework dictates that net proceeds from green bonds will be used to finance council-approved capital projects that support the city’s commitment to positive environmental goals, social responsibility and economic development across our communities.
Capital projects that include investments in renewable energy, energy efficiency, green buildings, clean transportation, pollution prevention and control, sustainable water and wastewater management, and environmentally sustainable management of living natural resources are eligible for the bond.
The city already has a list of projects that were approved for funding, including:
- Fire Hall 17 Renewal: The new hall will attempt to achieve net zero energy, Passive House and LEED Gold (v4) certification.
- Roddan Lodge Redevelopment: This project will provide affordable housing in one of the city’s toughest rental and buying markets — the Downtown Eastside. The project aims to offer more than 200 social housing units.
- Neighbourhood Energy Utility: This system, which has been operational since 2010, enables recycling of waste heat sources in the community and secures 100 per cent renewable energy outcomes for buildings connected to the system.
Environmental benefits include significant GHG reductions for new building developments in the False Creek area.
The inaugural $85 million green bond pays a 3.10 per cent coupon interest rate and matures on September 21, 2028.