Ontario Power Generation (OPG) has successfully issued $300 million in bonds under its Sustainable Finance Framework, with the proceeds earmarked for a range of low-carbon energy projects. This issuance is part of OPG’s commitment to supporting clean energy solutions and advancing economic reconciliation with Indigenous communities.
Since 2018, OPG has been Canada’s largest corporate issuer of green bonds, raising approximately $4.6 billion, including $1.5 billion in 2024 alone. The bonds issued in September 2024 were part of the company’s medium-term notes programme, offered in Canadian provinces through a syndicate of agents led by RBC Capital Markets and TD Capital Markets as joint bookrunners.
Under the new Sustainable Finance Framework, OPG can use the proceeds to fund a variety of projects, including renewable energy initiatives, clean transportation, and energy efficiency programs. The framework also focuses on economic reconciliation by supporting Indigenous communities. This support includes procurement from Indigenous-owned businesses and providing financing for Indigenous equity participation in OPG projects. The bond proceeds will be allocated to key energy-related projects, including new nuclear projects, such as Small Modular Reactors and the refurbishment of existing nuclear facilities, as well as renewable energy initiatives like hydro, solar, wind, and hydrogen production.
In addition, the funds will support energy efficiency and management solutions, clean transportation initiatives, and measures to increase climate adaptation and resilience capabilities for flood protection and extreme weather. OPG will update investors annually on the allocation of proceeds.
“Provincial forecasts show demand for low-carbon electricity potentially doubling by 2050,” said Aida Cipolla, OPG’s Chief Financial Officer and Corporate Services Officer. “This and future bond issuances will play a key role as we build out the low-carbon electricity system necessary to meet that demand, while also facilitating economic reconciliation, another of OPG’s core commitments.”