OPG issues $300 million in bonds under Sustainable Finance Framework

Press Release

TORONTO, ON – Ontario Power Generation has issued $300 million of bonds under its Sustainable Finance Framework.

The company will use net proceeds of the September issuance to fund a range of low-carbon energy projects.

Since 2018, OPG has been Canada’s largest corporate issuer of green bonds, totalling approximately $4.6 billion, including offerings by its subsidiaries. To date in 2024, OPG and its subsidiaries have issued $1.5 billion in green bonds, including $1.3 billion under the recently released Sustainable Finance Framework.

Provincial forecasts show demand for low-carbon electricity potentially doubling by 2050. This and future bond issuances will play a key role as we build out the low-carbon electricity system necessary to meet that demand, while also facilitating economic Reconciliation, another of OPG’s core commitments.
Aida Cipolla

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

Key facts

Under the company’s new Sustainable Finance Framework, OPG may use proceeds to fund expenditures and program investments to enable opportunities for Indigenous communities and majority-owned Indigenous businesses and organizations. Examples could include OPG:
- Procuring products and services from Indigenous-owned businesses
- Providing programs that empower Indigenous-owned businesses through training, education on potential business opportunities, and mentoring
- Providing financing to Indigenous communities, Indigenous-owned corporations or partnerships to enable equity participation in projects of OPG or its subsidiaries
OPG may also use proceeds to fund expenditures and program investments to provide specialized training, development, mentorship, and employment opportunities to Indigenous persons.
Energy-related projects and programs included under the framework include:
- New nuclear projects, such as Small Modular Reactors, and large new nuclear, 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
- 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.
OPG will update investors annually on the allocation of proceeds.

Quote

“Provincial forecasts show demand for low-carbon electricity potentially doubling by 2050,” said Aida Cipolla, OPG’s Chief Financial Officer and Corporate Services Officer. “This and future bond issuances will play a key role as we build out the low-carbon electricity system necessary to meet that demand, while also facilitating economic Reconciliation, another of OPG’s core commitments.”

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 advancing the development of new low-carbon technologies, refurbishment projects, and electrification initiatives to power the growing demands of a clean economy. Learn more about how the company is delivering these initiatives while prioritizing people, partnerships, and strong communities by reading OPG’s Integrated ESG Annual Report.

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For further information, please contact:

OPG Media Relations
416-592-4008 or 1-877-592-4008
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