Fundings research can get expensive, particularly when looking into cutting edge technology and techniques. In order to fund research at a new lab at Concordia University the school has launched a sustainable bond. Other schools have done this around the world in order to raise funding, Concordia is the first in Canada to do so. What’s different about Concordia’s bond issuance is related to research and not the facility itself.
Concordia’s $25-million senior unsecured bond offers investors a 3.626 per cent yield and has a duration of 20 years — the longest for any sustainable bond in Canada, according to Denis Cossette, the university’s chief financial officer. The bond will be used to reimburse the university of the capital it spent on financing its Science Hub, which will be home to aquatic biology, microscopy, cellular imaging and chemical and materials engineering labs for researchers.
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It’s the work that will take place inside the building that allowed Concordia to issue sustainable bonds instead of green bonds, Cossette said. The former required certification assuring that the Science Hub and the work that the university plans to conduct inside will contribute to three of the United Nations’ sustainable development goals — affordable and clean energy; industry, innovation and infrastructure; and climate action.