- Green Financing Expansion: Brookfield Renewable’s fifteenth green securities issuance strengthens its 2024 Green Financing Framework.
- Targeted ESG Investments: Proceeds will fund eligible green projects, including renewable energy, carbon capture, and sustainability initiatives.
- Innovative Financing Terms: Hybrid Notes feature a reset rate structure and align with the company’s sustainability commitments.
Why it matters:
Brookfield Renewable, a global leader in renewable power, continues to align its financing strategy with ESG priorities. This issuance demonstrates investor appetite for sustainable investments and bolsters Brookfield’s green financing track record.
The news:
Brookfield Renewable announced it will issue C$200 million of Fixed-to-Fixed Reset Rate Subordinated Hybrid Notes due March 2055. The notes, bearing an initial annual interest rate of 5.450%, will reset every five years starting March 2030 based on Canada’s five-year government yield plus a 2.499% spread.
“This marks our fifteenth green-labeled corporate securities issuance in North America,” the company stated, emphasizing its commitment to sustainable financing.
Purpose:
Proceeds will be used to fund eligible investments under Brookfield’s 2024 Green Financing Framework, including debt repayment tied to green projects. Examples include renewable energy development, carbon capture, and materials recycling.
Related Article: Brookfield Renewable Issues C$400 Million Green Bonds to Fund Sustainable Investments
Key context:
Brookfield Renewable’s green financing strategy enhances its global renewable portfolio, which spans hydroelectric, wind, solar, and emerging sustainable solutions like carbon capture. The company operates over 35,000 MW of capacity with a development pipeline of 200,000 MW.
“Our portfolio reflects a commitment to addressing the most pressing global sustainability challenges,” the company added.
Innovative structure:
The Hybrid Notes, issued by Brookfield Renewable Partners ULC and guaranteed by Brookfield Renewable, provide an attractive fixed-reset rate structure. The notes offer rating treatment similar to preferred shares and align with ESG investment goals.
The bigger picture:
This initiative reinforces Brookfield Renewable’s leadership in sustainable finance while meeting growing investor demand for ESG-driven instruments. The Green Financing Framework, publicly available on Brookfield’s website, underpins transparency and accountability in fund allocation.
Bottom line:
Brookfield Renewable continues to innovate in green finance, offering investors opportunities to contribute to sustainability while ensuring attractive financial returns. The issuance of these Hybrid Notes exemplifies its proactive approach to addressing global ESG challenges.
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