TransLink’s chief financial officer says Canadian green bonds are in demand and that’s why the transit authority will begin to issue that type of bond to pay for major projects.
CFO Rob Malli said TransLink will not be paying more for green bonds versus a regular bond and it can be better for taxpayers.
“TransLink is not going to pay more in interest rates on those bonds than we would otherwise, in fact we may even pay a little less, so that’s a positive outcome in the cost of our financing, demand outstrips supply right now in Canadian-issued green bonds in particular,” said Malli.
Green bonds allow investors to put money into environmentally friendly projects.
And over the next decade, the transit authority is looking to raise billions.
“TransLink expects to raise $3 billion out of the approved $10.5-billion investment plan.”
TransLink will be the first transit agency in Canada to issue green bonds. The first bond is expected to be issued next month.
In a news release, TransLink said green bonds align with the authority’s commitment to sustainability.
“Last week, the TransLink Board approved a plan to reduce greenhouse gas emissions by 80 per cent and to use 100 per cent renewable energy by 2050.”