Environmental Finance's Sustainable Debt Awards 2024

Green bond of the year - financial institution: Toronto-Dominion Bank

In December 2023, the Toronto-Dominion Bank (TD) issued a $500 million three-year green bond, led by a syndicate of underwriters including minority, female and veteran-owned enterprises.

The transaction was TD's fifth ESG-labelled issuance to date and represented the sole USD-dominated green, social or sustainability bond (use of proceeds instrument) by a Canadian issuer in 2023.

Amy WestThe green bond attracted an orderbook of over $2.6 billion with a final allocation of over 60% of the bond's orderbook going towards ESG-focused accounts.

Under TD's Sustainable Bonds Framework, net proceeds of the green bond will go towards environmental projects, such as renewable energy, energy efficiency, pollution prevention and clean transportation.

Sustainable Debt Award judges said it was a "very interesting issuance" and takes into consideration the issuer's targets and commitments.

In 2017, TD was the first major Canadian bank to set a low-carbon financing target. After meeting the CAD100 billion ($73.6 billion) target in 2022, TD released a new target in March 2023 of CAD500 billion in Sustainable and Decarbonization financing by 2030.

Cameron Joynt, vice president, enterprise capital management and funding capital management at TD Bank, commented: "As the first Canadian commercial bank to issue a green bond in 2014, TD is proud of its decade-long commitment to sustainable financing, including a track record of benefiting from the capabilities of our minority-, women- and veteran-owned syndicate. TD is delighted to be recognised by Environmental Finance and views this achievement as a testament to the strength of our sustainable financing efforts."

Amy West, global head of ESG Solutions at TD Securities, added: " Congratulations to TD Bank Group and the Treasury team on this accomplishment. This award recognises the efforts of many across the organisation to embed sustainability into our businesses and highlights TD's decade-long support of the sustainable bond markets"

Deal highlights:

Issuer: Toronto-Dominion Bank
Size: $500 million
Maturity: 11 December 2026
Coupon: 5.264%
Use of proceeds: Renewable energy, energy efficiency, pollution prevention and control, environmentally sustainable management of living natural resources and sustainable land use, clean transportation, sustainable water and wastewater management, green buildings
External reviewer: DNV GL
Credit rating: A1/A/AA- (Moody's/Standard & Poor's/Fitch)