Ontario Power Generation (OPG) has closed a second $500-million green bond issuance, with net proceeds primarily used to finance its recent acquisition of Eagle Creek Renewable Energy LLC, an operator of small waterpower facilities in the United States.
OPG’s green bond framework allows for broad use of proceeds to finance and/or refinance eligible projects that offer tangible environmental benefits, such as Eagle Creek, which operates one of the largest hydroelectric fleets in the U.S.
“OPG is proud to use green bonds to finance clean power initiatives,” said Ken Hartwick, OPG’s chief financial officer. “OPG believes low cost, reliable, clean power is fundamental to a healthy environment and a strong low-carbon economy.”
Acquiring Eagle Creek reinforces OPG’s commitment to focus on clean, reliable, and low-cost sources of energy, said the company.
OPG entered into a purchase and sale agreement with Eagle Creek to acquire 100 per cent of the company in June 2018. The transaction closed at the end of November 2018.
OPG issued its first green bond in June 2018, with proceeds used to fund several green energy projects such as the Ranney Falls Generating Station refurbishment.
According to OPG, more than 99 per cent of its generated power is free of smog and greenhouse gas emissions.