By Marisa Wong
Los Angeles, Sept. 9 – Desjardins Group launched an initial offering of C$500 million of sustainable bonds, according to a press release.
The sustainable bonds will be issued by the Federation des caisses Desjardins du Quebec in the form of senior notes bearing interest at a fixed rate of 1.587% and maturing on Sept. 10, 2026.
Desjardins Securities, HSBC Securities (Canada) and Scotia Capital are joint bookrunners. Desjardins Securities and HSBC Securities are also structuring agents.
The issuance is set to close on Friday.
This initial issuance is part of a broader sustainable bond program for the next few years, the company noted.
Proceeds will be used to finance or refinance loans, investments and internal or external projects that meet green assets or social assets eligibility criteria, such as renewable energy, sustainable food production and affordable housing. Other eligible categories may include energy efficiency, green buildings, clean transportation, sustainable water and wastewater management, pollution prevention and control, sustainable management of natural resources, employment generation through SME financing and access to essential services.
Desjardins has also set exclusionary criteria so that proceeds will not knowingly be used to finance any businesses whose principal activity is any of the following: tobacco, thermal coal, unconventional or nuclear weapons, predatory lending, gambling or adult entertainment.
In April, Desjardins had announced the implementation of a plan to achieve net zero emissions by 2040 in its extended operations and in its financing and capital investment activities in three carbon-intensive sectors: energy, transportation and real estate. Projects financed through the issuance of sustainable bonds will help the company reach this objective.
The cooperative financial group is based in Montreal.
| Issuer: | Federation des caisses Desjardins du Quebec
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| Issue: | Senior notes (sustainable bonds)
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| Amount: | C$500 million
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| Maturity: | Sept. 10, 2026
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| Bookrunners: | Desjardins Securities, HSBC Securities (Canada) and Scotia Capital
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| Coupon: | 1.587%
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| Announcement date: | Sept. 9
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| Closing date: | Sept. 10
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