As an acknowledged leader in the field of impact investing, it comes as no surprise to us that Ontario’s first $500 million green bond, offered in September, was almost five times over-subscribed. The capital raised will be dedicated to infrastructure projects like the Eglinton Crosstown LRT, now under construction. Funding of large transit projects in the region is a priority for TAF, because getting people out of personal vehicles and onto public transit addresses a major local source of greenhouse gas and air pollution.
TAF has always spent the interest earned from its endowment to advance low-carbon and air quality solutions. We are also committed to deploying the endowment capital in a manner that supports our mandate and I’m proud to say that almost 80% of TAF’s $25M endowment is currently invested for impact. That includes our equities portfolio and direct investments in local projects like high-rise residential energy efficiency retrofits. It now also includes $271,000 of Ontario’s green bond, purchased through our fixed income manager.
We have seen strong interest in opportunities for low-carbon investments for several years, and Ontario’s bond issue along with billions of other green bond offerings confirms that investors around the world really DO want their money to be deployed in an environmentally-responsible manner. And with current market conditions wreaking havoc with conventional energy values, the financial picture only becomes stronger for investments low-carbon alternatives.