EDC unveils new framework for sustainable, social, transition bonds

By Marisa Wong

Los Angeles, March 28 – Export Development Canada (EDC) announced it released a new third-party reviewed sustainable bond framework to offer, in addition to green bonds, sustainable, social and transition bonds.

Green bonds remain an important part of the new framework, but EDC has intensified its focus on climate change by adding transition proceeds, which have never before been included in a bond framework by a financial institution in North America, according to a Monday press release. These bonds are targeted specifically to facilitate the transition to a low-carbon economy.

The framework’s other significant new category is the social category, which aims to enable a more equitable society. These bonds can support affordable infrastructure, access to health and nutrition and equity-seeking businesses – those led or majority owned by women, Indigenous peoples, people from Black and other racialized communities, persons with disabilities and members of the LGBTQ2+ community, the company said.

EDC has been issuing green bonds since 2014, raising more than $2 billion through nearly 30 transactions, the release noted.

Ottawa-based EDC is a Canadian government-owned export credit agency.

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