(Bloomberg) -- Canada sold C$4 billion ($3 billion) of debt Tuesday, its first issue under an amended framework for green bonds that allows the country to raise funds to support nuclear power. 

The 10-year bonds have a 3.5% coupon and yield half a basis point less than Canadian government debt due in December 2033. 

The new framework makes Canada the first sovereign to venture into nuclear power finance through its green bond sales, the government said in a statement. European Union lawmakers have voted to give certain nuclear projects a sustainable label, a decision that left its parliament deeply divided amid concerns about waste disposal, the potential for weapons proliferation and the risk of accidental radiation.

This deal will likely be followed by similar issuances from public and private companies involved in nuclear power generation, Jonathan Hackett, head of sustainable finance at Bank of Montreal, one of the firms that underwrote the security, said in an interview. The completed transaction should help potential issuers’ confidence that there will be capital available when they need to refinance, he said. 

With the deal, “we have clear recognition that nuclear power is green,” Hackett said. 

 

--With assistance from Caleb Mutua.

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