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Green Bond Raises $2 Billion

Canada priced a seven-year green bond to raise $2 billion, following earlier green bond issuances of $5 billion, $4 billion, and $2 billion.

Department of Finance Canada said Canada successfully priced a seven-year green bond to raise $2 billion.

The issuance was part of Canada's commitment to regular green bond offerings.

Finance Canada described it as the fourth offering of Canadian-dollar-denominated green bonds.

The earlier offerings were Canada's first 7.5-year, $5 billion green bond in March 2022; a 10-year, $4 billion green bond in February 2024; and a reopening of that 10-year bond for an additional $2 billion in October 2024.

Green bonds are public-debt instruments whose proceeds are allocated to eligible green expenditures under the federal Green Bond Framework.

The February 2025 transaction matters for public finance because it shows how the federal government funds eligible climate and environmental spending through labelled debt rather than through ordinary borrowing alone.

For investors, the term and order-book demand help indicate market appetite for Canadian sovereign green debt. For taxpayers, the relevance is debt management: green bonds are still federal borrowing, but with proceeds tied to eligible green categories.

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Filed under Economy. Source type: primary official material.

Economy benefits tax credits public finance infrastructure legislation Finance Canada credit department of finance budget

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