Ontario Teachers’ Finance Trust Issues Inaugural Green Bond
TORONTO – Ontario Teachers’ Finance Trust (OTFT) announced today the issuance of a €750 million 10-year Green Bond. The issuance is fully, unconditionally and irrevocably guaranteed by Ontario Teachers' Pension Plan Board (Ontario Teachers’). The decision to issue a green bond builds on Ontario Teachers’ long history of responsible investing.
An amount equal to the net proceeds from this issuance will be allocated to assets that are environmentally and socially responsible and tackle critical issues like climate change. Eligible green assets satisfy one or more of the following:
- Replace direct fossil-fuel use;
- Facilitate low-carbon solutions;
- Significantly reduce emissions;
- Remove/store carbon;
- Help adapt to climate change impacts; or
- Help preserve or conserve scarce natural resources
“We believe a transition to a net zero economy is underway. This is expected to bring a host of attractive investments to Ontario Teachers’ that enable and support this transition, with the objective of earning strong risk-adjusted returns while also having a positive impact,” said Ziad Hindo, Chief Investment Officer at Ontario Teachers’. “OTFT’s green bond issuance allows us to access capital to support the much-needed investments to transition towards a sustainable future.”
This marks OTFT’s inaugural green bond issued under the Ontario Teachers’ Green Bond Framework (Framework), which was prepared in accordance with the four core components of the International Capital Markets Association Green Bond Principles.
The Framework was reviewed by CICERO Shades of Green, a world leader in providing second opinions on the qualification of debt for Green Bond status. It received a “CICERO Dark Green” shading indicating strong alignment with a low-carbon climate resilient future as well as a governance score of “Excellent.”
About Ontario Teachers’
The Ontario Teachers' Pension Plan Board (Ontario Teachers') is the administrator of Canada's largest single-profession pension plan, with $204.7 billion in net assets (all figures at June 30, 2020 unless noted). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.5% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific regional offices are in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded as at January 1, 2020, invests and administers the pensions of the province of Ontario's 329,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
OTFT is an indirect wholly owned subsidiary of Ontario Teachers’ that issues commercial paper and term-debt that is fully, unconditionally and irrevocably guaranteed by Ontario Teachers'. OTFT primarily generates funding through fixed income products in international markets. OTFT is an established global SSA issuer with outstanding benchmark bonds in USD, EUR and CAD.
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