Brookfield Renewable, a listed renewable energy platform, is set to issue roughly $542m (C$750m) in green bonds. The issuance comprises two components. A nearly $290m issuance maturing in 2036 carrying an interest of 4.9% and approximately $253m in five-year notes with an interest rate of 4.2%.
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The two issuances mark Brookfield Renewable’s 19th and 20th green labelled debt issuance in North America. The company’s green financing framework will govern its use of proceeds. The framework, published two years ago, includes a list of eligible investments.
The forms of energy that are eligible for proceeds includes solar, wind, geothermal and hydro energy. It also extends to biofuels, renewable natural gas and nuclear energy. Investments in energy efficiency, circular economy, clean transport and pollution reduction are also eligible.
According to regulatory filings, the company’s latest quarterly financial results show cash flow from operations estimated at $421m, driven by the highest levels of asset recycling in the company’s history. CEO Connor Teskey says rising energy demand played a key role.The company's filings also point to growth priorities including battery storage investments, increased liquidity and returns from closed transactions.
“Our diversified global business and leading capabilities across hydro, solar, wind, storage and nuclear enables us to accelerate our growth in this environment. With the recent acquisition of Aypa, the largest standalone battery storage platform in North America, we continue to enhance Brookfield Renewable’s position as the partner of choice for the largest corporate and sovereign buyers of power”, Teskey commented at the time.
