City announces new Sustainable Debenture Framework

From the City of Ottawa

February 28, 2024 – In support of the City’s ongoing commitment to advancing a more sustainable, resilient and liveable future, a new Sustainable Debenture Framework has been developed. Eligible green and/or social projects will now be able to be financed or refinanced under the updated framework.

Summary description: Eligible green and/or social projects will be financed or refinanced under the updated framework.

The framework includes updated eligibility criteria for its green use of proceeds categories along with new social use of proceeds categories, including:

• Affordable basic infrastructure

• Capital assets to provide access to essential services

• Social and affordable housing assets

• Capital assets contributing to socioeconomic advancement and empowerment

The City of Ottawa was the first Canadian municipality to issue a Green Bond in November 2017, and has since issued four Green Bonds totaling over $1 billion. Building on the Green Debenture Framework, the City has developed an updated Sustainable Debenture Framework under which it may issue green, social and sustainability debentures. The new framework is a key element in support of the City’s 2023-2026 City Strategic Plan, which aims to make the City more prosperous, sustainable, inclusive and resilient.

The framework was developed in alignment with current best practices and in close consultation with advisory partners, BMO Financial Group and RBC Capital Markets. The City of Ottawa also obtained an independent second-party opinion, which is available on ottawa.ca.