TD launches its first sustainability bond for ESG objectives

ESG "intrinsically linked to economic growth" says the banking group

TD launches its first sustainability bond for ESG objectives

A new bond from TD Banking Group will be used to further its environmental, social, and governance (ESG) aims.

The inaugural Sustainability Bond is the first to be issued under the group’s Sustainable Bonds Framework and the proceeds will be used to finance and/or refinance loans, investments and internal or external projects, that meet its criteria for being environmentally or socially responsible.

The framework was published last month and builds on its previous Green Bond Framework to recognize the importance of social and governance factors in supporting meaningful change in the communities in which it operates.

"We believe that economic growth and environmental and social sustainability are intrinsically linked, and that TD has a responsibility to play a positive role in fostering both," said Barbara Hooper, Executive Vice President of Treasury, Corporate Development and Strategic Sourcing. "We're excited to build on the momentum of our previous green bond offerings and help support long-term sustainability goals."

TD closed the three-year US$500 million sustainability bond maturing on September 28, 2023, on Monday (Sept. 28).

Bold target
The banking group set a target in 2017 to help support the transition to the low-carbon economy – $100 billion, in total, in low-carbon lending, financing, asset management and internal corporate programs by 2030. It was the first Canadian bank to do so.

It has announced other sustainability-focused initiatives recently:

  • On September 17, 2020, TD Asset Management Inc. (TDAM) announced the addition of two new mutual funds to its sustainability suite: TD North American Sustainability Equity Fund and TD North American Sustainability Balanced Fund. These new offerings are focused on helping investors achieve their financial goals while aligning their investments with their values to make a positive impact.
  • On September 16, 2020, TD Securities announced the formation of the new Sustainable Finance & Corporate Transitions Group. This new group will be the dealer's central point of client coverage, focused on providing thought-leadership and strategic advice for this critical area of growth.