Bruce Power, which runs Ontario’s biggest power plant, announced the issuance of $500 million in green bonds, which is a global first for nuclear power and a recognition of the critical role the technology plays in fighting climate change and enabling a net zero future.
“Clean nuclear power is crucial to fighting climate change, and today’s announcement marks another industry-leading step in the company’s environmental, social and governance strategy,” said Mike Rencheck, president and CEO of Bruce Power. “One of the largest greenhouse gas emission reduction initiatives in the world was the phase-out of coal-fired electricity in Ontario, and Bruce Power was at the heart of making this a reality by providing 70 per cent of the energy the province needed to achieve this goal.”
The historic milestone of the first nuclear green bond was made possible by Bruce Power’s track record of delivering emission reduction projects and its leadership in environmental stewardship, which includes coal phase-out, its commitment to be net zero by 2027 in support of a Net Zero Canada by 2050, and the launch of Bruce Power Net Zero Inc. Bruce Power has done all this while progressing one of Canada’s largest infrastructure renewal projects with its decades-long Life-Extension Program, as well as supporting many other environmental and sustainability initiatives across the province.
“Ontario’s electricity system is 94 per cent emission free, thanks in large part to Bruce Power who produces a third of the provinces power,” said Todd Smith, Ontario’s Minister of Energy. “Bruce Power continues to show leadership in developing innovative solutions to support Ontario’s emission-reduction targets.”
Todd Smith, Ontario’s Minister of Energy.
The proceeds from this historic Green Bond offering will be used or allocated in accordance with Bruce Power’s Green Financing Framework to finance or re-finance eligible investments associated with life extension and increasing output of existing units both of which contribute to Canada’s prosperous, clean energy future, and advance its climate change objectives.
“A strong nuclear industry is essential to a strong economy in Ontario,” said Rocco Rossi, president and CEO of the Ontario Chamber of Commerce. “Ontario’s nuclear sector injects billions into the economy every year, providing low-cost, reliable and carbon-free electricity that our businesses need to stay competitive in the world market, and life-saving medical isotopes which are vital resources in the global medical community.”
Bruce Power’s Green Financing Framework has received a Second-Party Opinion from CICERO Shades of Green (CICERO Green), an internationally recognized leading provider of independent review and second-party opinions on Green Bonds and Green Financing Frameworks.
In August 2021, the company received its second Environmental Social and Governance (ESG) Risk Rating by the third-party rating agency Sustainalytics. This ESG Risk Rating earned the company a spot in the Top 5 within its sub-industry globally.
“After structuring our sustainability-linked loan earlier this year and committing to reach Net Zero emissions from site operations by 2027, creating our Green Financing Framework is a meaningful and concrete next step toward ensuring the highest Green standards are reflected in our financing initiatives,” said Kevin Kelly, executive vice president of finance and chief financial officer at Bruce Power. “Through this framework, Bruce Power will continue investing in life extension and increasing the output of our units, which promotes environmental sustainability.”
BMO Capital Markets and TD Securities acted as co-lead Green structuring agents for the Framework. The bonds were offered on a private placement basis to certain accredited investors in each of the provinces of Canada, through a syndicate of agents co-led by BMO Capital Markets, HSBC and TD Securities as Lead Agents and Joint Bookrunners.
To learn more about Bruce Power’s environmental and sustainability projects, read our 2021 Sustainability Report.
Featured image courtesy of Bruce Power.