Brookfield Renewable Set to Issue Green Bonds Worth $321 Million

This is the company's fifth green bond offering in Canada

August 20, 2020


Canada-based renewable energy investor, Brookfield Renewable, announced that it would issue green bonds to the tune of CDN$ 425 million (~$321 million).

These medium-term notes will bear an interest of 3.3% per year, due on August 13, 2050. The issue is expected to close around August 13, 2020.

Sachin Shah, Chief Executive Officer of Brookfield Renewable, said that this is the company’s fifth corporate-level green bond offering in Canada, which brings the total green bonds issued to over $3 billion.

Green bonds are financial instruments designed to raise money for projects and activities related to climate and sustainability.  The notes have been rated BBB+ by Standard & Poor’s rating services and BBB (high) with a stable trend by DBRS Limited.

The notes will be offered through a syndicate of agents led by CIBC Capital Markets, BMO Capital Markets, and RBC Capital Markets, including National Bank Financial Markets, Scotiabank, HSBC, TD Securities, Mizuho Securities, MUFG, SMBC Nikko, and Industrial Alliance Securities Inc.

Shah further added that the green bonds would extend the duration of Brookfield’s corporate debt profile while reducing the cost of borrowing. The proceeds from the sale of notes will be used to repay debts incurred by Brookfield Renewable. This includes the early redemption of the 4.79% medium-term notes issued by Brookfield Renewable Partners ULC due February 7, 2022.

According to the company, Brookfield Renewable‘s portfolio consists of hydroelectric, wind, solar, and storage projects in North America, South America, Europe, and Asia. The company says it currently has over 19 GW of installed capacity along with an 18 GW development pipeline. Brookfield Renewable is the flagship renewable company of Brookfield Asset Management, a global alternative asset manager.

A few months ago, Kolkata-based Emami Group sold its solar power business to Brookfield Asset Management through a 100% stake sale.

Earlier, AC Energy, the energy platform of Philippines-based Ayala Corporation, launched its non-deferrable green bonds. The aggregate principal amount was $400 million, with a fixed coupon of 5.6% for life. This marks the first-ever dollar-denominated fixed-for-life green bond ever issued in the world, according to the company.