Toronto: Ontario Power Generation announced June 22 the closing of a $450 million green bond issuance, a “first-of-its-kind” financing for the Canadian energy sector. Proceeds will be used to finance hydroelectric projects that produce low-cost power free of carbon emissions.
"Today's bond offering is the first in the Canadian energy sector where a utility has issued green bonds to finance renewable and clean power projects that produce electricity free of carbon emissions," said Ken Hartwick, OPG's Chief Financial Officer.
Specific potential projects identified by OPG for green financing include:
• Peter Sutherland Sr. Generating Station – a 28 MW hydroelectric station on New Post Creek in Northeastern Ontario. Completed in March 2017 and a partnership between OPG and Taykwa Tagamou Nation.
• Ranney Falls Generating Station refurbishment – adding an additional 10 MW unit at Ranney Falls on the Trent River. It is expected to be complete in Q4 of 2019.
OPG will update investors annually on the use of proceeds and developments with respect to OPG's green bond program. The reports will include a complete list of eligible projects to which green bond proceeds have been allocated, a brief description of the projects, amounts allocated and the remaining balance of funds.
OPG has established a green bond framework that allows for the use of proceeds to finance projects that offer tangible environmental benefits. Sustainalytics, a leading provider of corporate environmental, social and governance research, ratings and analysis, completed a second-party opinion stating that OPG's green bond framework is "credible and impactful, and it aligns with the four core components of the Green Bond Principles 2017."