BMO Provides $392.98MM in Green Bonds to Bruce Power

Acting as co-lead green structuring agent, BMO Financial Group issued C$500 million ($392.98 million) in green bonds under a green finance framework with Bruce Power, a private sector power provider in Ontario. The green finance framework is designed to guide future issues of green bonds with a focus on Bruce Power’s life-extension program and investments related to increasing the output of nuclear units and extending the company’s plant’s life beyond 2060.

The framework sets out the guidelines in accordance with the green bond principles issued by the International Capital Markets Association (ICMA) and the green loan principles issued by the Loan Market Association (LMA) and the Loan Syndications and Trading Association (LSTA), ensuring the proceeds are exclusively allocated to green projects and activities that promote environmental sustainability and deliver clear environmental benefits.

CICERO Shades of Green, a provider of independent review and second-party opinions on green financing frameworks, gave Bruce Power’s green finance framework the highest possible governance score of “excellent” and an overall designation of CICERO Medium Green, acknowledging the role of nuclear power in mitigating climate change and recognizing Bruce Power’s risk management processes.

“Clean nuclear power is crucial to fighting climate change, and today’s announcement marks another industry-leading step in the company’s environmental, social and governance strategy,” Mike Rencheck, president and CEO of Bruce Power, said. “One of the largest greenhouse gas emission reduction initiatives in the world was the phase-out of coal-fired electricity in Ontario, and Bruce Power was at the heart of making this a reality by providing 70% of the energy the province needed to achieve this goal.”

“We’re proud to partner with Bruce Power to build a green framework that facilitates the alignment of the company’s business and financing activities to support nuclear power’s critical role in mitigating climate change,” Jonathan Hackett, head of sustainable finance at BMO Capital Markets, said. “Providing access to sustainable financing and being a lead partner in our clients’ transition to a net-zero future is part of BMO’s purpose to boldly grow the good in business and life.”

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