SYS-CON MEDIA Authors: Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel, Peter Silva

News Feed Item

North Island Hospitals Project green bond issue a first

VICTORIA, BRITISH COLUMBIA -- (Marketwired) -- 07/02/14 --


NEWS RELEASE
For Immediate Release
2014FIN0023-000901
July 2, 2014

Ministry of Finance
Ministry of Health

North Island Hospitals Project green bond issue a first

A green bond has been issued to finance the North Island Hospitals Project, Minister of Finance Michael de Jong announced today.

This is the first time a green bond has been used to fund a public-private partnership project in North America and the first time a green bond has been issued to finance public infrastructure in Canada. The 32.3-year bond was issued by Tandem Health Partners, the consortium delivering the North Island Hospitals Project, and raised about $231.5 million.

The issue was oversubscribed by investors attracted by the strength of B.C.'s triple-A credit rating as B.C. is the provider of annual service payments to Tandem Health Partners. Buyers were well distributed across insurance companies and fund managers, with both traditional buyers of public-private partnership project bonds participating as well as a number of new buyers. This successful issuance allows B.C. to provide leadership in a new and emerging green bond market in Canada.

Tandem Health Partners will deliver the North Island Hospitals Project including a new hospital in Campbell River and a new hospital in the Comox Valley. The hospitals will result in quality patient care delivered in modern acute care facilities for North Island residents.

The North Island Hospitals Project has been assessed as green by Altus Group Limited (Altus Group), an industry-respected consultant and technical advisor for public- and private-sector infrastructure projects. The B.C. government set the technical criteria for the development of the North Island Hospitals Project. The technical criteria, which include LEED gold certification, energy and greenhouse gas targets, along with the B.C. Climate Action Plan, provided the foundation to classify the project as green.

In April 2014, Tandem Health Partners was named the selected proponent for the North Island Hospitals Project. Negotiations followed and a fixed-price contract agreement to design, build, partially finance and maintain the new hospitals has been signed by Island Health and Tandem Health Partners. The agreement comes after three pre-qualified proponents were shortlisted in April 2013 for the Request for Proposal stage of the competitive bid process. An extensive evaluation of proposals resulted in Tandem Health Partners named as the selected proponent.

The $606.2-million North Island Hospitals Project is being cost-shared by the Province (60%) and the Comox Strathcona Regional Hospital District (40%).

A copy of the third-party report done by the Altus Group is available by contacting: [email protected]

Quotes:

Michael de Jong, Minister of Finance -

"B.C. is a national and global leader in delivering public infrastructure in a way that provides an attractive market for business, while protecting taxpayers from cost overruns or scheduling delays. Green bonds are just one more example of how B.C. is leading the way in developing innovative ways to help fund public infrastructure, adding another dimension of social and environmental responsibility for projects."

Terry Lake, Minister of Health -

"Government has set the bar high for LEED Gold certification with these two hospitals, and we're ensuring that they meet stringent energy-efficient qualifications including targets for energy reduction and greenhouse gas emissions. With these requirements, this project is supporting environmental sustainability, and at the same time, ensuring the best care for families living on the North Island now, and well into the future."

Matt Dekkers, vice-president, Tandem Health Partners -

"We are delighted to be selected by the government of British Columbia to work in partnership with Island Health to deliver this important project in the North Vancouver Island communities of Comox Valley and Campbell River. Working collaboratively with all interested stakeholders, Tandem Health Partners looks forward to the successful completion of these hospitals which will provide first rate health care services to support the communities of North Vancouver Island."

Sean St. John, executive vice-president, co-head and MD, fixed income, National Bank -

"National Bank Financial was privileged to act as lead underwriter on the first green public- private partnership bond issued in North America. In particular, we were very pleased to be able to assist the Province of British Columbia in achieving recognition of green principles that are built into the requirements on the North Island Hospitals Project."

Quick Facts:


--  The new Comox Valley hospital will have capacity for 153 beds and be
    built near the corner of Lerwick and Ryan roads in Courtenay.
--  The Comox Valley work will create approximately 1,000 direct jobs and
    over 750 indirect jobs in industries supplying goods and services used
    in construction.
--  The new Campbell River hospital will have 95 beds and be built at the
    existing hospital site on the corner of 2nd Ave. and Birch St.
--  The Campbell River work will create approximately 900 direct jobs and
    over 650 indirect jobs in industries supplying goods and services used
    in construction.
--  Both new hospitals will continue to provide the same acute-care services
    currently being delivered at the Campbell River and Comox Valley
    hospital sites.
--  Construction will begin in July 2014 with both hospitals ready for
    patient move-in by late 2017.

The Tandem Health Partners team includes:


--  Balfour Beatty Investments LP
--  Gracorp Capital Advisors Ltd.
--  Connor Clark & Lunn GVest Traditional Infrastructure LP
--  Graham Design Builders LP
--  Farmer Construction Ltd.
--  Stantec Inc.
--  Blue Cottage Consulting
--  Honeywell International Inc.
--  Balfour Beatty Communities.

Underwriters:


--  National Bank Financial
--  Bank of Nova Scotia

Learn More:

NIHP website: http://nihp.viha.ca/

Partnerships BC: http://www.partnershipsbc.ca

A backgrounder follows.

Connect with the Province of B.C. at: www.gov.bc.ca/connect


BACKGROUNDER
For Immediate Release
2014FIN0023-000901
July 2, 2014

Ministry of Finance
Ministry of Health

Green bonds: investments with a green conscience


--  Green bonds are similar to traditional bonds, but the proceeds are used
    exclusively for projects with environmental benefits.
--  Examples of green bond eligible projects are renewable energy projects,
    wastewater treatment or energy-efficient buildings.
--  Green bonds were first introduced in 2008 by the World Bank.
--  The global market for green-labelled bonds has been steadily growing and
    is expected to reach $25 billion in 2014. Bank of America estimates
    market growth of up to $40 billion in 2014 as the market had already
    reached $13 billion as of June 2014.
--  Current international green bond issuers include the World Bank,
    International Finance Corporation, European Bank for Reconstruction and
    Development, European Investment Bank, and State of Massachusetts.
--  In January 2014, a consortium of internationally recognized global banks
    outlined principles for green bonds. The North Island Hospitals Project
    green bond conforms to all the green bond principles outlined in the
    document, which is available here:
    http://www.ceres.org/resources/reports/green-bond-principles-2014-
    voluntary-process-guidelines-for-issuing-green-bonds/view.

Green bonds in Canada:


--  The North Island Hospitals Project green bond will be the first green
    bond for a public- private partnership project in North America and the
    first green bond for public infrastructure in Canada.
--  The green bond market is in the early stages of development in Canada.
--  Export Development Canada issued Canada's first USD green bond in
    January 2014, while TD Bank issued the first CAD green bond from a bank
    in March 2014.
--  The Province of Ontario plans to launch a multi-year green bond program
    this year. Some private-sector renewable energy projects in Ontario and
    Quebec have been funded by green bonds.

Connect with the Province of B.C. at: www.gov.bc.ca/connect

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
Mobile commerce traffic is surpassing desktop, yet less than 20% of sales in the U.S. are mobile commerce sales. In his session at 15th Cloud Expo, Dan Franklin, Segment Manager, Commerce, at Verizon Digital Media Services, defined mobile devices and discussed how next generation means simplification. It means taking your digital content and turning it into instantly gratifying experiences.
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.