Province of Ontario Appoints BNY Mellon to Service its First Green Bond

The Province of Ontario has selected BNY Mellon as fiscal agent, registrar, principal paying agent and transfer agent for the issuance of its new green bond.

Profits made by Ontario’s green bond program will be used to fund financial projects that possess clear environmental benefits for the province, and are in-keeping with its Green Bond Framework. The initial green bond, a C$500 million issuance, will fund the Eglinton Crosstown Light Rail Transit (LRT) project in Toronto.

“We’ve seen increasing demand for investment vehicles like green bonds as more investors seek investment options that allow them to build a strategy around their social and environmental values,” says Sonia Chaliha, head of sales and relationship management for Latin America and Canada for BNY Mellon Corporate Trust. “It’s been estimated that green bonds may account for 10 to 15 per cent of global bond issuance in the next five to seven years.”