CDPQ Infra has raised $1.85 billion for the REM automated light-rail rapid-transit line spanning the Greater Montreal Area through the company’s first green-bond offering.

The financing, completed through senior unsecured fixed-rate notes issued by Projet REM s.e.c., is intended to support the REM, formally known as the Réseau express métropolitain, as it transitions into a long-term operating phase. The issuance established a long-term bond program and attracted strong investor demand across 5-, 7-, 10- and 30-year maturities, allowing the project to secure favourable pricing throughout the offering.

CDPQ Infra said the transaction ranks among the largest inaugural green bond issuances globally in the transportation sector, based on available data, and reflects growing investor confidence in the REM as a long-term infrastructure asset.

The organization said the financing will optimize the project’s capital structure, diversify its funding sources and maintain an appropriately calibrated risk profile. It added that the approach is designed to maximize the REM’s financial efficiency and generate stable long-term returns for La Caisse’s depositors.

“This announcement illustrates the REM’s dual objective: to deliver a transformative and reliable public transit service for users while generating sustainable returns for La Caisse’s depositors,” said Daniel Farina, president and CEO of CDPQ Infra. “The strong success of this green-bond issuance confirms the relevance of leveraging financial solutions that align with the energy transition and the nature of the REM. By keeping users at the heart of our decisions, we continue to create long-term value for the benefit of the community and our depositors.”

CDPQ Infra is the investructure investment arm of La Caisse, one of Canada’s large pension-fund managers.

Image: CDPQ Infra