Ontario Power incorporates sustainability targets into 364-day revolver

By Taylor Fox

New York, Dec. 17 – Ontario Power Generation became the first company in the Canadian power and utilities sector to incorporate sustainability targets into its corporate financing needs, according to a news release.

This reflects Ontario Power’s leadership position on sustainability, while reducing credit costs.

Mizuho Americas is the sole lead arranger and administrative agent for the $750 million 364-day senior unsecured revolving standby credit facility and RBC is the sustainability structuring agent.

Ontario Power’s lending facility is subject to reduced credit and borrowing costs if the company meets sustainability targets on safety, installation of electric vehicle chargers, trees planted and hydroelectric capacity development.

"OPG has shown sustained leadership in climate change action and has pledged to act as a catalyst for efficient, economy-wide decarbonization and economic renewal while protecting the environment going forward, with clear and ambitious goals set out in the company's Climate Change Plan," said Ontario Power president and chief executive officer Ken Hartwick in the release.

Ontario Power’s climate change plan pledges it will be a net-zero carbon company by 2040 and will act as a catalyst to help the markets where it achieves net-zero carbon economies by 2050.

The facility supports Ontario Power’s short-term liquidity needs.

Ontario Power Generation is an Ontario government-owned electricity provider based in Toronto.

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