McMillan advises Government of Canada on its Third Green Bond Issuance

On October 17, 2024, the Government of Canada completed its third green bond issuance, following the second $4 billion offering in March 2024 and the inaugural $5 billion offering in March 2022.

The $2 billion re-opening of the 10-year bond is part of the federal government’s commitment to regular green bond issuances and is the second offering under Canada’s updated Green Bond Framework, released in November 2023, which allows for certain nuclear energy expenditures to be eligible for green bond proceeds. Canada is the first sovereign borrower to issue a green bond including certain nuclear expenditures, demonstrating Canada’s commitment to being a global leader in clean nuclear power.

This marks another major transaction that bolster Canada’s sustainable finance strategy, further enabling support for green initiatives and advancing Canada’s investments in clean growth, renewable energy, climate action, and environmental protection. Green bonds unlock private financing to speed up projects such as green infrastructure and nature conservation.

McMillan was retained as outside legal counsel to the Government of Canada by the Department of Justice. The multidisciplinary team was led by Eric Friedman and included Sandra Zhao, Arjin Choi, Christina Kim, and Shaniel Lewis.

To address our client’s needs and help them stay ahead, the firm’s Capital Markets & Securities Group joined forces with the Financial Services Group. Our legal teams are skilled at structuring and closing complex transactions in Canadian, US and international capital markets, and providing innovative transactional advice and solutions. Our understanding of business imperatives and our relationships with the regulators helps us deliver unmatched value to our clients.