Canada’s first PPP green bond

Author: Zoe Thomas | Published: 4 Aug 2014

Tandem Health Partners has issued the first green bond linked to a public private partnership (PPP) in North America.

The PPP for the development of the North Island Hospitals Project in British Columbia (BC), Canada, is also first non-recourse private sector green bond to be issued.

The deal, which benefits from Canada’s mature project finance sector, comes as investors push for more socially conscious investing. The proceeds of the $231.5 million, July 3 offering will be used to build new hospitals in BC that meet high energy efficiently standards, certified by an external consultant. Failure to meet the environmental targets set out in the green bonds will invoke a financial penalty.

While this penalty is set out in the bond terms, failing to meet environmental standards for...