BMO Publishes an Updated Sustainable Bond Framework with Innovative Green, Social and Transition Financing Categories
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BMO's new Sustainable Bond Framework governs issuances of BMO Green, Social, Transition and Sustainability Bonds, and replaces its Sustainable Financing Framework
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Framework's social use of proceeds criteria incorporate the BMO EMpower initiative, focused on inclusive economic growth
- Framework includes market-leading use of proceeds categories including nuclear energy and climate transition financing, receiving a 'very good' sustainability quality score from Moody's in its Second Party Opinion
Under the updated Sustainable Bond Framework, BMO may issue four types of sustainable bonds: Sustainability Bonds, Green Bonds, Transition Bonds and Social Bonds. The Framework, which received a Sustainability Quality Score from Moody's of SQS2 ('Very Good') in its Second Party Opinion, contains eighteen use of proceeds categories across the four types of bonds. Each type of bond's proceeds will be applied to finance or refinance, in part or in full, new or existing assets that are aligned with the four core components of the
Recognizing nuclear power's role in energy transition, BMO included nuclear energy as an eligible green financing activity. The criteria for nuclear energy activities include the deployment and operation of technologies that produce energy from nuclear processes; construction and operation of new nuclear power plants; and life extension and refurbishment of existing nuclear energy facilities.
"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
For information about BMO's Sustainable Bond Framework, go here.
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