Sustainable bonds: Capital with purpose

BCI actively looks for opportunities to invest in sustainable bonds — which offer clients compelling investment returns and exposure to positive sustainability outcomes, including climate mitigation strategies. Through primary market participation, our investments support leading issuers in directing funds toward tangible environmental and social solutions. 

BCI’s total historical participation in sustainable bonds reached more than $6.9 billion as of March 31, 2026. This includes support for a total of 75 issuing entities through 156 new issues since 2013 and investments in 16 new issuances valued at $480 million during the last fiscal year.  

The year-over-year deployment decrease reflects reduced offerings from US corporate issuers and North American banks, and fewer investment opportunities in Canadian sovereign, supranational and agency (SSA) bonds.

An expanded definition

In line with evolving market practice, BCI broadened its sustainable bonds definition and methodology in fiscal 2026 to better identify, track, and report on the full range of investments with distinctive sustainability attributes. The program now encompasses two categories:

•  Labelled bonds: use-of-proceeds bonds designated green, social, or sustainability under a sustainable finance framework. This has been BCI’s historical approach. 
•  Unlabelled bonds: bonds from issuers deriving the majority of revenues from activities aligned with the UN Sustainable Development Goals (SDGs), as classified by Net Purpose¹ and bonds from issuers or issuances with distinctive sustainability attributes. 

Engaging on market standards

To improve the product offering for bond investors, we engage with market participants, underwriting banks, issuers, and other investors.  

BCI is the sole Canadian investor member of the International Capital Market Association (ICMA) Green Bond Principles and Social Bond Principles, and has been a participant in the Climate Transition Finance Working Group since 2024. In November 2025, ICMA published new Climate Transition Bond Guidelines, providing guidance on issuing bonds under a standalone label to finance projects that lead to greenhouse gas emissions avoidance, reduction, or removal from high-emitting sectors and activities.  

In addition, BCI continues to be an active member of the Canadian Bond Investors’ Association (CBIA) ESG Committee. 

Investments in support of economic benefits for Indigenous Peoples

BCI was an anchor investor in the launch of the First Nations Finance Authority’s (FNFA) borrowing program in 2014. Since inception, we have participated in 13 FNFA bond deals representing over $350 million. We have also been one of the largest supporters of the FNFA commercial paper program since its launch in 2021.  

In 2025, BCI served as an anchor investor in a Bank of Montreal (BMO) bond where use-of-proceeds are being allocated to Indigenous-owned businesses and communities across Canada. BMO was the first bank in North America to issue an Indigenous-labelled bond to support projects such as infrastructure, economic development, and community initiatives. 

“These investments provide our clients with compelling returns, as well as exposure to positive social outcomes like infrastructure projects and job creation. Through these primary bond market participations, BCI’s activity supports client investment objectives and funds tangible economic benefits for Indigenous Peoples.” 

– Chris Weitzel, Senior Managing Director, Fixed Income & Foreign Exchange 

Participation across issuers and industries

BCI participates in the sustainable bond market by investing in a diverse universe of issuers, including SSA issuers — such as all levels of government organizations and development banks — and corporate investment-grade and high-yield issuers.

Canadian-dollar-denominated SSA bonds represent 45% of our total historical participation, with issuances by development banks representing just under 10%, and Canadian federal, provincial, municipal governments, and agencies, such as public sector entities, reflecting over 35% of total historical participation. Fiscal 2026 investment highlights include: 

• $125 million+ invested in labelled and unlabelled bonds from Canadian federal, provincial, and municipal governments including borrowers with distinctive sustainability attributes. 

• $75 million invested in green and sustainability bonds issued by international development banks. 

Canadian-dollar-denominated corporate issuances represent over 30% of our historical participation. Fiscal 2026 investment highlights include:  

• $150 million+ invested in Canadian utilities issuing green bonds or that are SDG-aligned. 
• $50 million+ invested in green and sustainability bonds issued by Canadian financial institutions or real estate investment trusts. 

US-dollar-denominated corporate issuances represent over 20% of our historical participation, including about 10% from financial institutions and over 5% from industrials. Fiscal 2026 investment highlights include: 

• $40 million+ invested in companies primarily aligned with SDGs. 

Fiscal 2026 sustainable bond investment examples