Montreal-based BMO Financial Group introduced its first sustainability bond on Monday.
The $500-million three-year Sustainability Bond will bear a fixed interest rate of 2.05% and will mature on Nov. 1, 2022. Proceeds of the bond will support eligible green and social asset categories as defined in the bank’s sustainable financing framework, a BMO release said.
Published in September, the framework defines eligible assets across seven green and four social project categories linked to the United Nations 2030 Agenda for Sustainable Development.
Distribution of the bond was co-led by BMO Capital Markets. The offering closed on Oct. 21.
In addition, the bank announced the development of an impact investment fund with $250 million in seed capital.