BMO has improved the current green and social use of proceeds criteria in its Sustainable Bond Framework (previously known as the “BMO Sustainable Financing Framework”), which was initially introduced in 2019.
The framework has been expanded to include financing for nuclear energy, low-carbon fuels, electrification of major industrial processes, adaptation to climate change, new categories that represent the BMO EMpower project, and more.
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BMO is authorised to issue Sustainability Bonds, Green Bonds, Transition Bonds, and Social Bonds in accordance with the revised Sustainable Bond Framework.
Moreover, it has 18 use of proceeds categories across the four types of bonds.
The revenues from each bond will be used to fund or refinance assets in accordance with the ICMA’s Green, Social, and Sustainability Bond Principles and the Climate Transition fund Handbook, assuring openness and accountability.
Nuclear power plays a part in the energy transition, and BMO has acknowledged this by classifying it as an acceptable green financing activity that calls for the deployment, operation, building, and renovation of nuclear power facilities.
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By GlobalData“We are pleased to announce these updates to BMO’s Sustainable Bond Framework including the addition of nuclear energy and transition uses of proceeds” said Sharon Haward-Laird, general counsel, BMO financial group, and chair of the BMO Climate Institute.
“BMO has advised corporate and government clients on their sustainable bond frameworks and, in doing so, we recognise the importance of innovation and a practical approach to sustainability. This is reflected in our inclusion of innovative green, transition and social financing categories in our updated Framework. We remain committed to transparency and continuing to report on asset allocation and project impacts as part of our annual sustainability reporting suite.”
Furthermore, earlier last month, BMO Global Asset Management and Carlyle partnered to offer access to a globally diversified private equity portfolio, set to be available from spring.
It is BMO Global Asset Management’s third agreement to increase the availability of private markets for Canadian accredited investors.
