The TMX Sustainable Bond Portal (SBP) is the centralized repository for information related to green, social and transition bonds in the Canadian market. Bonds featured on this platform are offered for trading to retail investors on the TSX and can be accessed through your usual brokerage platform.
Click the links below for more details.
Sustainable Bonds are similar to traditional bonds in that they are issued for a fixed period of time, pay an interest rate coupon to the holder and are backed by the issuing entity's credit rating. There are three broad categories of sustainable bonds; green bonds, social bonds and an emerging category called transition bonds.
Sustainable bonds differ from traditional bonds in that the proceeds of the bond issuance and the management of the proceeds are made transparent. Additionally, sustainable bonds, such as those made available for trading by the TSX, are all required to have a second opinion issued by a recognized independent third party firm. The International Capital Markets Association provides a summary on sustainable bonds.
Yes. There are three types of sustainable bonds at present; green bonds, social bonds and transition bonds. Bonds currently available for trading on TSX are green bonds. However, as the market continues to grow we may add additional sustainable bonds that meet our criteria, including social and transition bonds.
A sustainable bond (green, social or transition) framework details how a sustainable bond issuer plans to use, manage and report on the use of proceeds from the issuance of the bond. The sustainable bond framework is an important document to help investors understand whether the bond is aligned with their investment objectives, values, risk profile, etc.
According to the International Capital Markets Association, social bonds are any type of bond instrument where the proceeds will be exclusively applied to finance or re-finance in part or in full new and/or existing eligible Social Projects. ‘Social Projects’ typically include affordable basic infrastructure (e.g. clean drinking, water, sewers, sanitation, transport, energy), affordable housing, socioeconomic advancement and empowerment. ICMA’s Social Bond Principles can be found here.
Sustainable bonds can be bought/sold through your online broker or investment advisor or however else you would normally purchase investment products.
There are numerous anticipated benefits to transacting on the TSX:
Please consult your investment advisor or registered dealer regarding the benefits/risks and other advice regarding sustainable bonds.
The sustainable bonds posted for trading on TSX are not listed on TSX, and the issuers of the sustainable bonds may not be “reporting issuers” in Canada. As a result, there is no assurance that information concerning the issuer of the sustainable bond is available or, if the information is available, that it meets Canadian disclosure requirements. The issuer of the sustainable bonds may not be subject to regulation or other oversight by any of the provincial securities regulators, TSX or IIROC.
A sustainable bond second opinion assesses an issuer’s sustainable bond framework and is typically provided by an independent third party. The second opinion assesses whether the issuers framework adheres to best practices and recommendations, such as those from the International Capital Markets Association.
The coupon is the interest rate paid by the issuer on the sustainable bond. The coupon does not necessarily reflect the anticipated return of the sustainable bond. Please seek professional advice to evaluate specific securities.
|Term to Maturity||Base||+ Variable Fee Rate based on Listing Capitalization||Maximum Fee|
|Less than 5 years:||$6,000||0.001%||$20,000|
|Greater than 5 years but less than 10 years||$6,000||0.002%||$25,000|
|Equal to or greater than 10 years||$6,000||0.004%||$30,000|
Other Corporate Issuers will be charged the original listing fee for Corporate Issuers when listing non-convertible debt.
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