Renewable Energy and Cleantech Financing
Our Wholesale Banking team is at the forefront of financing new and innovative projects that contribute to cleaner, alternative or renewable energy supplies, including biogas, biomass, district energy systems, hydroelectric, solar and wind.
CIBC lent $490 million towards $4.6 billion of financing in 2014 for renewable power projects, including wind, solar and biomass “CIBC is a key lender that helped us raise sufficient capital for the Gemini Wind Farm project. This €2.8 billion, Northland Power-sponsored offshore wind farm is the largest project-based financing for renewable energy in the world. Located in the North Sea, it is strategic to global growth in our renewable power generation portfolio” – John Brace, CEO, Northland Power.
Green Bond Principles
In 2014, CIBC’s wholesale banking business became a member of the Green Bond Principles (GBP) initiative, a set of voluntary guidelines designed to promote integrity in the green bond market where capital is raised to fund projects with environmental benefits. Green Bonds enable capital-raising and investment for new and existing projects with environmental benefits. The appeal of Green Bonds lies in the ability to support such projects while maintaining the risk/reward characteristics of traditional fixed income products.
Launched in 2014 by the International Capital Markets Association, the GBP initiative provides transparency and disclosure guidance for bond issuers and underwriters when launching green offerings. It is also designed to ensure that investors have the information necessary to evaluate the environmental impact of green bond investment opportunities.
As a member, CIBC provides input on governance and updates to the GBP and helps select an executive committee that oversees the principles. CIBC is committed to helping issuers and investors access this growing market and ensuring that funding continues to be available for important environmentally-themed projects.
Also in 2014, CIBC was awarded its first green bond mandate as joint lead and joint bookrunner on the Province of Ontario's $500 million global green bond. Ontario's offering is the first-ever Canadian dollar green bond to be issued by a Canadian government. Proceeds of the issuance will be used to help finance the Eglinton Crosstown Light Rail Transit project in Toronto.
Gemini Wind Farm Project