Power-asset firm Brookfield Renewable has agreed to issue C$250 million ($182.81 million) aggregate principal amount of fixed-to-fixed reset rate subordinated hybrid notes due September 10.

Hybrid notes are securities that combine characteristics of both debt and equity.

These will bear interest at an annual rate of 5.373 per cent and reset every five years starting on September 10, 2030, at an annual rate equal to the five-year Government of Canada yield, plus a spread of 2.459 per cent.

Bermudian-based Brookfield Renewable Partners, a subsidiary of Brookfield Renewable, will be the issuer of the hybrid notes, which will be fully and unconditionally guaranteed by Brookfield Renewable and certain of its key holding subsidiaries.

The hybrid notes will be issued pursuant to a base shelf prospectus dated September 8, 2023, and a related prospectus supplement to be dated June 4, 2025. The issue is expected to close on or about June 10, 2025 subject to customary closing conditions.

The hybrid notes will represent Brookfield Renewable’s seventeenth green labelled corporate securities issuance in North America and the sixth issuance under Brookfield Renewable’s 2024 green financing framework.

Brookfield Renewable intends to use the net proceeds from the sale of the hybrid notes to fund eligible investments, to repay indebtedness incurred in respect thereof.

The green financing framework is available on Brookfield Renewable’s website and described in the prospectus supplement in respect of the offering.

The hybrid notes are being offered through a syndicate of underwriters led by Scotiabank, BMO Capital Markets, RBC Capital Markets, CIBC Capital Markets, National Bank Financial Markets and TD Securities, and including Desjardins, BNP Paribas, Mizuho Securities, MUFG, SMBC Nikko and iA Private Wealth Inc.