Green bonds for Brookfield Renewable
Brookfield Renewable, the flagship listed renewable power company of Brookfield Asset Management, has agreed to issue C$400 million of green bonds.
The Series 16 medium-term notes, due October 28, 2033, will bear interest at a rate of 5.292 per cent per annum, payable semi-annually.
Brookfield Renewable Partners ULC, 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.
The notes will be issued pursuant to a base shelf prospectus dated August 20, 2021 and a related prospectus supplement and pricing supplement dated March 27, 2023. The issue is expected to close on or about Wednesday this week, subject to customary closing conditions.
The notes will represent Brookfield Renewable’s seventh corporate-level green bond in Canada.
Brookfield intends to use the net proceeds from the sale of the notes to repay indebtedness incurred by the partnership to fund eligible investments (as defined in the Brookfield Renewable green bond and preferred securities framework dated February 2020).
The notes have been rated BBB+ by S&P Global Ratings, BBB (high) with a stable trend by DBRS Limited and BBB+ by Fitch Ratings, the organisation said.
The notes are being offered through a syndicate of agents led by Scotiabank, CIBC Capital Markets and RBC Capital Markets, and including BMO Capital Markets, National Bank Financial Markets, TD Securities, HSBC, Desjardins, Mizuho Securities, MUFG, SMBC Nikko, iA Private Wealth Inc and Sera Global.
Brookfield Asset Management, a global alternative asset manager with approximately $800 billion of assets under management, is part of Brookfield, the international organisation that last week announced plans to build a multi-storey office building at 91 Front Street in Hamilton.
The footprint of the new building will extend from Front Street to Reid Street along Chancery Lane.
Another related company, Brookfield Reinsurance, last month entered into a definitive merger agreement that will see the company acquire Bermudian-based Argo Group International Holdings Ltd in an all-cash transaction valued at approximately $1.1 billion.
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