McMillan LLP Advises Government of Canada on its Second Green Bond Issuance

On March 5, 2024, the Government of Canada completed its second offering of green bonds, following the inaugural $5 billion offering in 2022.

This 10-year $4 billion green bond is the first issuance under Canada’s updated Green Bond Framework, released on November 21, 2023, which includes nuclear energy expenditures, making Canada, the first sovereign borrower to issue a green bond including nuclear expenditures.

As a significant transaction that will support Canada’s sustainable finance strategy, it will provide financing for numerous projects in green infrastructure, clean energy, clean transportation, nature conservation and other environmental initiatives.

Bank of Montreal (BMO), Canadian Imperial Bank of Commerce (CIBC), Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD) and Scotiabank acted as the co-lead underwriters.

McMillan was retained as the sole outside legal advisor to the Government of Canada by the Department of Justice, the Bank of Canada and Finance Canada. The multidisciplinary and national team was led by Eric Friedman and Paul Davis and included Ravipal Bains and Troy Hilson.

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.