Quebec government issues more green bonds for Montreal light-rail system

The Quebec government has released a fourth green bond issue totaling CA$800 million that primarily will be used to finance the Reseau express metropolitain (REM).

Managed by CDPQ Infra Inc., a subsidiary of Caisse de depot et placement du Quebec, the CA$6.3 billion REM is a 41-mile, 26-station light-rail system under construction in the Montreal area. Service is slated to start on the automated electric line in summer 2021.

The Quebec government made an equity investment of CA$1.28 billion in the project that will be financed by issuing green bonds.

Similar to the first three bond issues, the fourth has generated strong investor interest, provincial government officials said in a press release. Investors specializing in green finance, many of whom are from abroad, have contributed significantly to all four issues, they said.

Green bonds help finance projects that promise tangible benefits in protecting the environment. Eligible projects are selected by a Green Bond Advisory Committee.

The province's green bond program also continues to finance Societe de Transport de Montreal's acquisition of AZUR metro cars for the Montreal metro, as well as hybrid buses.