OPG issues first bonds under Sustainable Finance Framework

$1 billion issuance will fund clean energy projects 

TORONTO, June 28, 2024 /CNW/ - Ontario Power Generation has issued $1 billion of bonds under its recently released Sustainable Finance Framework.

The company will use net proceeds of this issuance to fund a broad range of clean energy projects.

As the largest Canadian corporate issuer of green bonds, OPG is furthering its leadership in sustainable financing through this latest issuance. In all, since 2018, OPG has issued green bonds totaling approximately $4.3 billion, including offerings by its subsidiaries. OPG will update investors annually on the allocation of proceeds.

OPG offered the bonds as part of its medium-term notes program in each Canadian province, through a syndicate of agents jointly led by BMO Capital Markets, CIBC Capital Markets and RBC Capital Markets as Lead Agents and Joint Bookrunners.

Key facts

• OPG issued its Sustainable Finance Framework earlier this week. It provides opportunities to facilitate Indigenous communities' and businesses' participation in OPG's projects and initiatives, through procurement, training, education, and employment. Energy-related projects and programs included under the framework include:
  • New nuclear projects, in addition to maintenance or refurbishment of existing facilities;
  • Renewable energy projects like hydro refurbishment, solar, wind and hydrogen production;
  • Energy efficiency and management solutions such as energy storage and clean fuel storage;
  • Clean transportation initiatives such as zero-emissions vehicles; and
  • Initiatives to increase climate adaptation and resilience capabilities for flood protection and extreme weather
• This builds on OPG's Green Bond Framework (2021), which for the first time, permitted funding of refurbishment and maintenance of existing nuclear facilities, in recognition of nuclear energy's role in the global clean economy.

Quotes

"Our bond offering under this new framework is an important step forward in enabling the clean energy transition," said Aida Cipolla, OPG's Chief Financial Officer and Corporate Services Officer. "Integrating these objectives into financing helps OPG meet our core commitment of building a sustainable future powered by our electricity, ideas and people."

Caution Regarding Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable securities laws. Forward-looking information generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans", or "continue", or similar expressions suggesting future outcomes or events. Some of the specific forward-looking information in this press release includes, among other things, statements regarding the intended use of net proceeds from the offering and the anticipated closing of the offering. This forward-looking information is based on a variety of assumptions and is subject to risks and uncertainties, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in OPG's securities regulatory filings, including its most recent annual information form and management's discussion and analysis, which can be found on SEDAR+ at www.sedarplus.ca. 

About OPG

As one of North America's largest, most diverse electricity generators, OPG invests in local economies and employs thousands of people across Ontario and the US. OPG and its family of companies are leading the development of new clean technologies, refurbishment projects, and electrification initiatives to power the growing demand of a clean economy. Learn more about how the company is advancing these initiatives while prioritizing people, partnerships, and strong communities by reading OPG's Climate Change Plan, Reconciliation Action Plan, and Equity, Diversity, and Inclusion (ED&I) strategy.

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SOURCE Ontario Power Generation Inc.

For further information, please contact: Ontario Power Generation, 416-592-4008 or 1-877-592-4008