- Ontario Power Generation (OPG) initiates CAD 1 billion bond sale for clean energy projects.
- Funds to support wind, solar, hydrogen production, and hydropower refurbishment.
- OPG aims to enhance sustainability and support Ontario’s climate goals with diversified clean energy investments.
Ontario Power Generation (OPG) has launched a significant bond sale to raise CAD 1 billion (approximately USD 730.7 million, EUR 682.1 million) to strengthen its commitment to advancing clean energy projects. This fundraising effort, executed under OPG’s Sustainable Finance Framework, marks a pivotal moment in the company’s strategy to expand its renewable energy portfolio across Canada.
The bond issuance is part of OPG’s broader medium-term notes program, designed to finance projects that align with sustainable development goals and contribute to a greener future. Investors from various Canadian provinces will be able to participate in this offering, which a syndicate of leading financial agents, including BMO Capital Markets, CIBC Capital Markets, and RBC Capital Markets, oversees as joint bookrunners and lead agents.
Proceeds from the bond sale will be strategically allocated to several critical areas within OPG’s clean energy agenda. Among these initiatives are investments in wind and solar power generation, which are pivotal components in Ontario’s transition to renewable energy sources.
These projects aim to enhance energy security, significantly reduce greenhouse gas emissions, and foster environmental sustainability. Moreover, a substantial portion of the raised capital will be directed towards hydrogen production, which holds promise as a versatile and clean energy carrier essential for decarbonising various sectors of the economy.
The funds will also support refurbishing existing hydropower facilities, aiming to optimise their operational efficiency and extend their service life, thereby maximising their contribution to Ontario’s renewable energy capacity. In addition to enhancing renewable energy production, OPG plans to deploy funds into energy efficiency initiatives and energy storage solutions.
These investments are critical for ensuring grid stability and reliability, particularly as the province continues integrating intermittent renewable energy sources into its power grid. Furthermore, the bond proceeds will facilitate advancements in clean transportation infrastructure, including electric vehicle charging networks, and support initiatives to adapt to climate change impacts.
OPG remains committed to promoting sustainability across its operations, with a portion of the funds earmarked for constructing new nuclear plants, which play a vital role in Ontario’s low-carbon energy mix. Aida Cipolla, OPG’s Chief Financial Officer and Corporate Services Officer emphasised the strategic importance of bond issuance in advancing the company’s environmental objectives.
“Our bond offering under the Sustainable Finance Framework represents a significant step forward in our journey towards a more sustainable energy future,” Cipolla affirmed. It underscores OPG’s dedication to innovation and leadership in clean energy solutions.”
The bond sale by OPG underscores the growing trend among utility companies to harness financial markets to accelerate the transition to renewable energy and support sustainable development goals. By leveraging investor interest in sustainable finance, OPG aims to strengthen its renewable energy capabilities and contribute meaningfully to Ontario’s ambitious climate action targets.
This initiative comes amid increasing global recognition of the urgent need for investments in renewable energy infrastructure to mitigate climate change impacts. OPG is poised to make substantial strides in advancing clean energy technologies and infrastructure through proactive engagement with capital markets, solidifying its position as a leader in Canada’s energy transition.
(CAD 1.0 = USD 0.731/EUR 0.682)