TransLink to issue green bonds to finance transit expansion

TransLink next month expects to issue its first-ever green bonds, the agency announced this week.

Bond proceeds will fund projects in the agency's 10-Year Vision, the largest transit expansion in Vancouver, British Columbia. The plan includes SkyTrain's Broadway subway extension and construction of the new Surrey light-rail line.

The bond sale will launch in mid-November, subject to market conditions, TransLink officials said in a press release.

Since 2010, TransLink has raised funds directly through conventional bonds to finance projects. While most of those projects have been "environmentally friendly," a green bond project will be required to meet TransLink's "Green Bond Framework," as certified by independent assurance provider Sustainalytics.

TransLink officials anticipate the green bonds will diversify the agency's investor base, and bring accountability and validation to major projects.

"Green Bonds are a natural fit for TransLink," said TransLink Chair Lorraine Cunningham. "We are the fastest-growing transit authority in North America. We have ambitious environmental goals. Our ridership is growing rapidly and we have big plans for the future, making us an attractive option for investors seeking an investment with strong, green credentials."

TransLink will be the first Canadian transit agency to issue green bonds. In 2015, Seattle's Sound Transit became the first U.S. transit agency to sell green bonds.