CDPQ Infra says the deal ranks among the largest transit green bonds to date
CDPQ Infra has closed a $1.85bn issuance of senior unsecured fixed-rate notes for the Réseau express métropolitain (REM), the subsidiary of La Caisse said, as the project moves toward a long-term operating phase.
The notes carry maturities ranging from 5 to 30 years, according to CDPQ Infra, which said the spread of terms let the issuer capture demand and price the offering across the full curve.
For La Caisse's depositors, CDPQ Infra positioned the deal as part of a financial management approach that optimizes the project's capital structure and diversifies its funding sources while maintaining what the subsidiary called an appropriately calibrated risk profile.
The financing aims to deliver stable long-term returns for depositors, the firm said.
The REM issues through Projet REM s.e.c., a limited partnership.
CDPQ Infra said it structured the notes as a green bond.
Based on available data, it described the transaction as one of the largest green bond issuances completed for a public transit infrastructure project and among the most significant inaugural issuances in the global transportation sector.
The announcement shows the REM's "dual objective," said Daniel Farina, president and chief executive of CDPQ Infra.
The project aims to deliver reliable public transit for users while generating sustainable returns for La Caisse's depositors, he said.
CDPQ Infra said the release contains forward-looking information, including on the use of proceeds, and that actual results may differ from expectations because of various risks and uncertainties.
