CPPIB issues Euro-denominated green bonds

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Green grass  us dollar symbol against blue sky ©  Sergey Nivens  / 123RF Stock PhotoesThe Canada Pension Plan Investment Board is issuing its first Euro-denominated green bond.

The one billion Euro sale of 10-year fixed-rate notes aims to help the CPPIB invest in relevant, environmentally conscious assets, including renewable energy projects in wind and solar, water and wastewater management and certified green real estate. It’s also a way for the CPPIB to broaden its investor base, according to a press release.

“The European market for green bonds is robust and gaining even more traction amid changes, such as the E.U.’s increased targets for how much of the region’s consumed energy comes from renewable sources,” said Poul Winslow, senior managing director and global head of capital markets and factor investing at the CPPIB, in the release. “The capital raised will help finance our expanding portfolio of eligible green assets and demonstrate how we integrate environmental considerations into our investment decisions.”

CPPIB’s joint venture in renewable power and offshore wind assets is eligible for green bond investments. In 2018, the pension fund acquired 49 per cent of Enbridge’s interests in two German offshore wind projects and a 49 per cent interest in the company’s North American onshore wind and solar assets.

The latest issuance follows the CPPIB’s first green bond release of $1.5 billion in June 2018.

This article originally appeared on CIR’s companion site, Benefitscanada.com. Read the full story here.

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