Algonquin Power Co. Announces Green Bond Offering

/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR TO U.S. PERSONS/

OAKVILLE, ON, April 6, 2021 /CNW/ - Algonquin Power Co., a subsidiary in the Liberty Renewable Energy Group of Algonquin Power & Utilities Corp. (TSX: AQN) (NYSE: AQN)  ("Liberty Power") announced today that it has offered for sale C$400 million 2.85% senior unsecured debentures with a maturity date of July 15, 2031 (the "Liberty Power Debentures") pursuant to a private placement in Canada (the "Offering"). The Liberty Power Debentures were offered at a price of C$999.92 per C$1,000 principal amount.

The Liberty Power Debenture Offering is a "green bond" offering. Under AQN's Green Financing Framework, the proceeds of the Offering will be used to finance and/or refinance investments in renewable power generation and clean energy technologies. This is Liberty Power's second "green bond" offering and aligns with AQN's commitment to advancing a sustainable energy and water future. The Green Financing Framework is available on AQN's website www.algonquinpower.com  

Concurrent with the Offering, Liberty Power is entering into a cross currency swap, coterminous with the Liberty Power Debentures, to convert the Canadian dollar denominated proceeds from the Offering into U.S. dollars, resulting in an effective interest rate throughout the term of the Liberty Power Debentures of approximately 2.83%.

Liberty Power Debentures are expected to receive final ratings of BBB (stable) by Standard & Poor's Financial Services LLC, BBB (stable) by Fitch Ratings Inc. and BBB (stable) by DBRS Limited.

The Liberty Power Debentures are being offered through a syndicate of agents led by CIBC World Markets Inc. and National Bank Financial Inc. The Offering is expected to close on or about April 9, 2021.

THE OFFER AND SALE OF THE LIBERTY POWER DEBENTURES HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.  THEREFORE, THIS COMMUNICATION DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE LIBERTY POWERDEBENTURES IN THE UNITED STATES AND THE LIBERTY POWER DEBENTURES MAY NOT BE SOLD IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED IN RULE 902(K) OF REGULATION S UNDER THE SECURITIES ACT), EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENT OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. ACCORDINGLY, THE LIBERTY POWER DEBENTURES ARE BEING OFFERED ONLY (1) TO A LIMITED NUMBER OF QUALIFIED INSTITUTIONAL ACCREDITED INVESTORS IN TRANSACTIONS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (2) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH REGULATION S AND THE APPLICABLE LAWS OF THE JURISDICTIONS WHERE THOSE OFFERS AND SALES OCCUR.

About Liberty Power

Liberty Power develops, owns, and operates a portfolio of long-term contracted wind, solar, and hydroelectric generating facilities.  As an independent power producer, Liberty Power delivers stable and growing earnings from a diversified portfolio of non-regulated renewable and clean energy powered electric generation facilities; demonstrates a responsible attitude to the environment and the community partners that host its facilities; recognizes that continued development of people is key to success; and provides continuing growth from an expanding pipeline of greenfield renewable power projects and value accretive acquisitions.

For more information, please visit www.algonquinpower.com.

About Algonquin Power & Utilities Corp. and Liberty

Algonquin Power & Utilities Corp., parent company of Liberty Power, is a diversified international generation, transmission, and distribution utility with approximately U.S. $13 billion of total assets. Through its two business groups, the Regulated Services Group and the Renewable Energy Group, collectively known as "Liberty", AQN is committed to providing safe, secure, reliable, cost-effective, and sustainable energy and water solutions through its portfolio of electric generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada.  AQN is a global leader in renewable energy through its portfolio of long-term contracted wind, solar, and hydroelectric generating facilities. AQN owns, operates, and/or has net interests in over 3 GW of installed capacity.

AQN is committed to delivering growth and the pursuit of operational excellence in a sustainable manner through an expanding global pipeline of renewable energy and electric transmission development projects, organic growth within its rate-regulated generation, distribution, and transmission businesses, and the pursuit of accretive acquisitions.

Visit AQN at www.algonquinpower.com

Caution Regarding Forward-Looking Information

Certain statements included in this news release constitute ''forward-looking information'' within the meaning of applicable securities laws in each of the provinces of Canada and the respective policies, regulations and rules under such laws and ''forward-looking statements'' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, ''forward-looking statements"). The words "will", "expects", "anticipates" and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Specific forward-looking statements contained in this news release include the use of the proceeds from the Offering, the expected final credit ratings for the Liberty Power Debentures and the expected closing date of the Offering. These statements are based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments. Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. AQN cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. Material risk factors include those set out in AQN's most recent annual and interim management's discussion and analysis and most recent annual information form. Given these risks, undue reliance should not be placed on these forward-looking statements, which apply only as of the date hereof. Other than as specifically required by law, AQN undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise.

SOURCE Liberty

Investor Inquiries: Amelia Tsang, Vice President, Investor Relations, Algonquin Power & Utilities Corp., E-mail: [email protected], Telephone: [phone]; Media Inquiries: Stephanie Bose, Director, Corporate Communications, Liberty, E-mail: [email protected], Telephone: [phone]