Scotiabank issues its largest green bond, aligning investments with sustainable development goals
Scotiabank recently launched its first €1bn, 5-year senior fixed rate Green Bond (EUR Green Bond) in the European market.
This issuance aligns with the Sustainable Issuance Framework released on April 5 (Framework).
Scotiabank plans to allocate an amount equal to the net proceeds from the EUR Green Bond offering to finance or refinance, fully or partially, new, or existing Eligible Green Assets, as specified in the Framework.
This EUR Green Bond marks the largest green or sustainability bond offering by any Canadian financial or corporate entity to date.
It demonstrates Scotiabank's commitment to playing a significant role in fostering innovation through financial products and services in a world increasingly impacted by climate change.
Paul Scurfield, global head, Capital Markets, Global Banking and Markets at Scotiabank, stated, “This is Scotiabank's fourth green or sustainability labelled benchmark bond, and our first in Europe.”
“We believe it represents a step forward for our sustainable finance program and we are proud to demonstrate Scotiabank's ongoing interest to play a leading role in sustainable finance across our global markets,” he continued.
The bond was issued under the new Framework, which updates and replaces the Bank's Sustainable Bond Framework from 2021.
Noteworthy enhancements in the Framework include the broadening of instruments for raising sustainable finance and the addition of more Eligible Green and Social categories.
These categories now encompass Nuclear Energy, Circular Economy, Climate Adaptation, and Food Security & Sustainable Food Systems. Moody's Investors Service provided a Second Party Opinion on the Framework, awarding a Sustainability Quality Score of SQS2 (Very Good).
In another significant move, on April 8th, Scotiabank introduced its first Sustainability GIC for retail and small business clients. Governed by the same Framework, this 30-month non-redeemable GIC will allocate its proceeds to finance or refinance Eligible Green and Social Assets.
Martin Weeks, executive vice president and group treasurer at Scotiabank, expressed, “Scotiabank is delighted to achieve these milestones from a funding program and diversification perspective. This new Framework enables the Bank to use the proceeds from eligible products to support a broader range of Green and Social Assets and support the Bank in its sustainability initiatives.”
Meigan Terry, SVP and Chief Sustainability, Social Impact, and Communications officer at Scotiabank, highlighted the collaborative efforts involved, “At Scotiabank, we are engaging collaboratively with our stakeholders to develop and invest in initiatives that aim to contribute to important sustainability outcomes.”
“By continuing to evolve our own Framework as we deliver innovative financing products, we are working towards the goal of a more sustainable future.”
