Brookfield Renewable to Issue Green Bonds Worth $318.75 Mn

Brookfield Renewable Partners has agreed to issue USD 318.75 million aggregate principal amount of medium-term notes (green bonds).

Brookfield Renewable Partners has announced that it has agreed to issue CDN$ 425 million (USD 318.75 million) aggregate principal amount of medium-term notes (green bonds), Series 14, due August 13, 2050, which will bear interest at a rate of 3.33 percent per annum, payable semi-annually. Brookfield Renewable Partners ULC (Finco), a subsidiary of Brookfield Renewable, will be the issuer of the Notes, which will be fully and unconditionally guaranteed by Brookfield Renewable and certain of its key holding subsidiaries.

“We are pleased to announce the issuance of our fifth corporate-level green bond offering, which brings our total green issuances to date to over USD 3 billion and further strengthens our position as a leading issuer of sustainable capital,” said Sachin Shah, Chief Executive Officer of Brookfield Renewable. “The issuance meaningfully extends the duration of our corporate debt profile while reducing our cost of borrowing and reflects the high-quality nature of our renewable power portfolio.”

The Notes will represent Brookfield Renewable’s fifth corporate-level green bond offering in Canada. The firm intends to use the net proceeds from the sale of the Notes to repay indebtedness incurred by Brookfield Renewable to fund Eligible Investments, including the early redemption of the 4.79 percent medium-term notes issued by Finco due February 7, 2022.

The Notes have been rated BBB+ by Standard & Poor’s Rating Services and BBB (high) with a stable trend by DBRS Limited. The Notes are being offered through a syndicate of agents led by CIBC Capital Markets, BMO Capital Markets and RBC Capital Markets and including National Bank Financial Markets, Scotiabank, HSBC, TD Securities, Mizuho Securities, MUFG, SMBC Nikko and Industrial Alliance Securities Inc.

In July, the firm had, alongside its institutional partners, announced that it has entered into a binding agreement to acquire a 1200 MW advanced solar development project in Brazil, which will be targeted for completion in early 2023.

Approximately 75 percent of the project is contracted under long-term inflation-linked power purchase agreements, and Brookfield Renewable intends to leverage its deep power marketing expertise to contract the remaining generation prior to beginning construction. The total equity required to complete the project is expected to be approximately USD 200 million.