Ontario Power Generation raises US$500 million in green financing to acquire hydro operator

Ontario Power Generation (OPG) has closed a second US$500 million green bond issuance, with net proceeds primarily used to finance the 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 which offer tangible environmental benefits, such as Eagle Creek, which operates one of the largest hydroelectric fleets in the U.S.

Acquiring Eagle Creek reinforces OPG’s commitment to focus on clean, reliable and low-cost sources of energy.

OPG entered into a purchase and sale agreement with Eagle Creek to acquire 100% 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.

OPG generates safe, clean, reliable, low-cost power for Ontario. More than 99% of this power is free of smog and greenhouse gas emissions. OPG’s power is priced an average of 40% lower than other generators, which helps moderate customer bill