Ontario issues second 'green' bond, secures funding for transit-rail projects

The Ontario government announced Tuesday that it has issued its second 'green' bond and raised $750 million (in Canadian dollars) to support environmentally friendly projects, including two transit-rail initiatives.

The Eglinton Crosstown Light-Rail Transit project in Toronto will receive up to $402 million from the proceeds, Ontario Ministry of Finance officials said in a press release. The funds also will be used to build electric-powered vehicles that produce near-zero emissions, they added.

GO Transit will receive up to $200 million to electrify its Regional Express Rail system and to achieve Leadership in Energy and Environmental Design (LEED) gold-level certification for the rail network's stations and facilities.

"These investments will help to manage congestion, connect people to jobs and improve the economy and residents’ quality of life," said Ontario Minister of Transportation Steven Del Duca.

Pioneered by the World Bank in 2008, green bonds are a tool to raise capital for projects that have specific environmental benefits. Ontario's set of green bonds was issued globally, primarily to institutional investors.