The stage is set for any second green bond issue by the province of Ontario. The province, which raised $500 million of four-year debt at 1.75 per cent in October 2014, has announced the lead managers to have an upcoming offering. Given that marketing has started, the deal might be priced as early as now.
The province has appointed Bank of America Merrill Lynch, BMO Capital Markets, HSBC Canada, RBC Capital Markets and TD Securities for its offering. On its previous deal, BofA Merrill Lynch, CIBC, HSBC and RBC Capital Markets played the key roles. Ontario has welcomed two domestic firms and said farewell to 1.
The talk is that Ontario is after at least $500 million, even though there is room for the deal to grow, based on the Street. It’s understood the province needs seven-year money that will be priced poor its domestic funding costs.