The federal Department of Finance has chosen Toronto-Dominion Bank and HSBC Bank Canada as the structuring advisors for its first green bond issuance.

The Liberal government said in the 2021 federal budget that it aims to raise $5 billion for green infrastructure investment with a green bond planned to hit the market later this year. This would be the “first of many green bond issuances,” the budget said.

TD Securities and HSBC were chosen to advise on the green bond framework and to assist in its development and issuance.

“Green and sustainable bonds are one way of increasing the flow of capital to low-carbon and socially responsible projects needed for a prosperous economy,” said Amy West, managing director and global head of sustainable finance and corporate transitions with TD Securities, in a release. “We are proud to work with the Government of Canada on this important initiative.”

HSBC Bank Canada president and CEO Linda Seymour said the bank has supported inaugural green bonds in the U.K., Chile, Korea, Hong Kong and other countries.

“We have been at the forefront of green bond issuance here in Canada since 2014, supporting provincial governments through multiple green bond issuances,” Seymour said in a separate release. “This is a major milestone as we all work together to deliver Canada’s recovery.”

The government also indicated in the budget that it’s considering “social bonds” in the future.