Milbank, Tweed, Hadley & McCloy LLP has represented Canada’s export credit agency Export Development Canada (EDC) in its inaugural offering of green bonds, whose proceeds will support the agency’s lending to environmentally beneficial initiatives worldwide.
The $300 million offering of 0.875% bonds due 2017 closed on January 30. It is one of the first SEC-registered green bond issuances. J.P. Morgan Securities plc and SEB Securities, Inc. acted as underwriters.
Transactions supported by EDC’s green bonds will include those aimed at the preservation, protection, or remediation of air, water or soil or the mitigation of climate change, such as waste management systems, smart grid infrastructure, public and alternative energy transportation, sustainable forest and agriculture management, and bioenergy. Examples of projects related to EDC’s green bond program include public transport projects in the UK and Australia, renewable energy projects in the US and Argentina, and recycling and recovery projects in the US.
Milbank securities partners Paul Denaro and Robert Mullen and associate Jeremy Steckel led the team advising EDC, assisted by associate Kaveh Namazie.
Mr. Denaro said, “This transaction reflects EDC’s commitment to the environment and to its corporate social responsibility principles, and will help pave the way for other governments or corporations that want to issue green bonds. We’re honored to help EDC obtain financing from the capital markets to support its environmental lending initiatives.”
