OMERS successfully completes first sustainable bond offering
Earlier this week, OMERS Finance Trust (OFT) announced that it has successfully closed its first offering under a recently established The inaugural dual tranche sustainable bond offering comprised USD 600 million of 10-year notes and USD 500 million of 30-year notes, securing strong international investor interest and a two times oversubscription.
“The establishment of the Framework and issuance of our first sustainable bonds is another example of our commitment to sustainable investing and demonstrates conviction in our ability to profitably deploy capital into assets with strong green and social attributes,” said OMERS Chief Financial and Strategy Officer Jonathan Simmons. “The appeal of sustainable bonds to the investment community enabled us to tap into global capital markets at attractive rates to enhance returns for our members.”
This is the first time that OFT has issued a sustainable bond. The bonds were rated AAA by Fitch, AAA by DBRS, AA+ by S&P, and Aa1 by Moody’s. For further details on the first notes offered under the program, please see the .
“We are proud to support the evolution of sustainable finance in Canada through the offering of these instruments,” said Michael Kelly, OMERS Chief Corporate Affairs and Legal Officer. “The proceeds from our sustainable bonds will be used to finance investments in areas including renewable energy, green buildings, and access to affordable basic infrastructure, such as broadband internet. We believe well-run organizations with sound ESG practices will perform better, and be well-positioned to create value and opportunity, particularly over the longer term.”
OFT obtained an independent opinion on the Sustainable Bond Framework from Sustainalytics that confirms, “the OMERS Sustainable Bond Framework is credible and impactful and aligns with the International Capital Market Association’s Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2021.”
Sustainalytics, a Morningstar company and a globally-recognized provider of ESG research, ratings and data, evaluated OMERS Finance Trust’s Framework and the alignment thereof with relevant market standards and provided views on the robustness and credibility of the Framework which views are intended to inform investors in general, and not for a specific investor.
OMERS Finance Trust
OFT is an independent entity that issues debt unconditionally and irrevocably guaranteed by OMERS Administration Corporation (AC). OFT extends loans to support certain OMERS investments.
Founded in 1962, OMERS is one of Canada’s largest defined benefit pension plans, with $121 billion in net assets as at December 31, 2021. OMERS is a jointly-sponsored pension plan, with 1,000 participating employers ranging from large cities to local agencies, and over half a million active, deferred, and retired members. OMERS members include union and non-union employees of municipalities, school boards, local boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario. Contributions to the Plan are funded equally by members and employers. OMERS teams work in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across North America and Europe – serving members and employers and originating and managing a diversified portfolio of high-quality investments in public markets, private equity, infrastructure, and real estate.