OPG Releases Sustainable Finance Framework

June 25, 2024

Ontario Power Generation (OPG) has released its Sustainable Finance Framework, replacing OPG’s Green Bond Framework (2021). The Framework will permit funding of a broader range of clean energy technologies as well as initiatives to create opportunities for Indigenous communities and businesses.

The Framework provides opportunities to facilitate Indigenous communities and businesses participating in OPG’s projects and initiatives through procurement, training, education and employment. Introducing social categories focused on Indigenous Reconciliation in this framework will enable established bond investors and OPG to further commitments to engage and work with Indigenous communities, businesses, and organizations to advance Reconciliation.

In addition, under the Framework, net proceeds from OPG’s sustainable bond issuance may now finance a broader array of projects and programs, including:

  • New nuclear projects, such as small modular reactors and large new nuclear, in addition to maintenance or refurbishment of existing facilities
  • Renewable energy projects like hydro refurbishment, solar, wind and hydrogen production
  • Energy efficiency and management solutions such as energy storage and clean fuel storage
  • Clean transportation initiatives such as zero-emissions vehicles, and
  • Developing climate adaptation and resilience capabilities for flood protection and extreme weather.

BMO and RBC Capital Markets acted as Co-Sustainable Structuring Agents for OPG’s Sustainable Finance Framework.

Key facts
  • This Framework replaces OPG’s Green Bond framework (2021) which introduced funding for the refurbishment and maintenance of existing nuclear facilities.
  • OPG was the first Canadian utility to issue green bonds in Canada and together with its subsidiaries is the largest corporate issuer in Canada (as of March 31, 2024), with more than $3 billion to date.
  • OPG is working on leading edge of clean energy technologies, including:
    • Deploying North America’s first grid-scale small modular reactor, the first of a fleet of four OPG and partners will build at the Darlington New Nuclear Project site, pending regulatory approval.
    • Developing hydrogen production facilities across the province through its subsidiary, Atura Power.
  • S&P Global Ratings, a leading provider of independent, research-based evaluations of green bond and sustainability financing frameworks completed a second-party opinion on OPG’s Sustainable Finance Framework. This evaluation indicated OPG’s Framework is aligned with certain International Capital Market Association Principles.  Refer to the second-party opinion on OPG’s Investor Relations webpage for more details.


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