Scotiabank launches $1.25 billion sustainability notes in Canada
- Scotiabank issued CAD $1.25 billion in five-year Sustainability Notes on September 26, 2024, marking its first offering under the Sustainable Issuance Framework.
- This issuance is notable as it is the largest sustainability note by any financial institution in Canada and the first from a major Canadian bank since 2021.
- The successful response to these Notes highlights investor demand and reinforces Scotiabank's commitment to sustainable finance.
On September 26, 2024, Scotiabank made a significant move in the sustainable finance sector by issuing CAD $1.25 billion in five-year Sustainability Notes. This offering is the first under the bank's Sustainable Issuance Framework and represents a milestone as the largest sustainability note issued by any financial institution in Canada. It also marks the first such issuance from a major Canadian bank since 2021, indicating a renewed focus on sustainable investment opportunities in the region. The Sustainability Notes are particularly noteworthy as they are the first benchmark sustainability issuance globally to permit the allocation of proceeds to nuclear energy projects. This reflects a broader acceptance of nuclear energy as part of the sustainable finance landscape, which has traditionally focused on renewable energy sources. The allocation of proceeds is designed to support both Eligible Green and Social Assets, demonstrating Scotiabank's commitment to a diverse range of sustainable initiatives. Investor response to the Notes has been positive, showcasing a strong demand for sustainable financial products. This enthusiasm underscores Scotiabank's role as a leading provider and advisor in sustainable finance, as articulated by Paul Scurfield, the bank's Global Head of Capital Markets. The issuance is part of a broader strategy, with Scotiabank having raised a total of $5.7 billion since 2019 for financing or refinancing eligible green and social projects. Overall, this issuance not only strengthens Scotiabank's sustainable funding program but also positions the bank as a key player in the evolving landscape of sustainable finance, paving the way for future initiatives that align with environmental and social governance principles.