Brookfield Renewable to Issue C$450 Million of Green Bonds
Rhea-AI Summary
Brookfield Renewable (NYSE: BEP, BEPC) has announced plans to issue C$450 million in Series 19 Notes due October 12, 2035, with a 4.542% annual interest rate. The notes, representing the company's sixteenth green-labeled corporate securities issuance in North America, will be issued through Brookfield Renewable Partners ULC and are expected to close around March 12, 2025.
The Notes have received investment-grade ratings: BBB+ from S&P Global Ratings and Fitch Ratings, and BBB (high) from DBRS The proceeds will be used to fund Eligible Investments under Brookfield's 2024 Green Financing Framework, including debt repayment.
The offering is being managed by a syndicate of agents led by major financial institutions including CIBC Capital Markets, RBC Capital Markets, and TD Securities, among others. The securities have not been registered under the U.S. Securities Act and are subject to certain restrictions in the United States.
Positive
- Successful placement of C$450 million green bonds demonstrates strong market access
- Investment-grade ratings (BBB+/BBB high) reflect solid credit profile
- 4.542% interest rate indicates competitive financing terms
Negative
- Additional debt increases company's leverage and interest expenses
Insights
Brookfield Renewable's C$450 million green bond issuance represents a strategic financing move that strengthens its capital position while maintaining investment-grade status. The 10-year notes carrying a
The pricing appears competitive in the current interest rate environment, particularly for a decade-long commitment. With this being Brookfield's sixteenth green-labeled issuance in North America, the company has clearly established a track record of successfully tapping debt markets with environmentally-focused securities.
This transaction represents approximately
The use of proceeds to fund eligible investments under their Green Financing Framework or repay related debt provides financial flexibility to support their renewable energy portfolio development. This issuance demonstrates continued market access at favorable terms, which is important for capital-intensive renewable infrastructure businesses requiring consistent funding for growth initiatives.
This green bond issuance highlights Brookfield Renewable's continued leadership in sustainable finance. As their sixteenth green-labeled securities offering in North America, this demonstrates both market demand for their green debt instruments and the company's commitment to aligning financing activities with their environmental mission.
The green bond market has matured significantly, with investors increasingly discriminating between issuers based on credibility and framework integrity. Brookfield's recently updated 2024 Green Financing Framework suggests they're maintaining current best practices in this evolving space.
Green bonds typically offer issuers subtle advantages, including access to a broader investor base of ESG-focused funds and potentially more favorable pricing due to high demand for credible green assets. The involvement of twelve financial institutions in the syndicate indicates strong distribution capabilities across diverse investor segments.
The BBB+ rating positions these bonds firmly in the investment-grade category, making them eligible for major fixed-income portfolios with ESG mandates. This issuance reinforces Brookfield Renewable's market position as a leading renewable infrastructure operator with integrated sustainability across both operations and financing strategy, creating a coherent investment narrative for ESG-conscious investors seeking fixed-income exposure.
BROOKFIELD, News, March 10, 2025 (GLOBE NEWSWIRE) -- Brookfield Renewable (NYSE: BEP, BEPC; TSX: BEP.UN, BEPC) (“Brookfield Renewable”) today announced that it has agreed to issue C
Brookfield Renewable Partners ULC, a subsidiary of Brookfield Renewable, will be the issuer of the Notes, which will be fully and unconditionally guaranteed by Brookfield Renewable and certain of its key holding subsidiaries.
The Notes will be issued pursuant to a base shelf prospectus dated September 8, 2023 and a related prospectus supplement and pricing supplement to be dated March 10, 2025. The issue is expected to close on or about March 12, 2025 subject to customary closing conditions.
The Notes will represent Brookfield Renewable’s sixteenth green labelled corporate securities issuance in North America. Brookfield Renewable intends to use the net proceeds from the sale of the Notes to fund Eligible Investments (as defined in Brookfield Renewable’s 2024 Green Financing Framework, the “Green Financing Framework”), including to repay indebtedness incurred in respect thereof. The Green Financing Framework is available on Brookfield Renewable’s website and described in the prospectus supplement in respect of the offering.
The Notes have been rated BBB+ by S&P Global Ratings, BBB (high) with a stable trend by DBRS Limited and BBB+ by Fitch Ratings.
The Notes are being offered through a syndicate of agents led by CIBC Capital Markets, RBC Capital Markets, TD Securities, BMO Capital Markets, Scotiabank and National Bank Financial Markets, and including Desjardins, BNP Paribas, Mizuho Securities, MUFG, SMBC Nikko and iA Private Wealth Inc.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction, nor shall there be any offer or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement. The offer and sale of the securities has not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold in the United States or to United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Brookfield Renewable
Brookfield Renewable operates one of the world’s largest publicly traded platforms for renewable power and sustainable solutions. Our renewable power portfolio consists of hydroelectric, wind, utility-scale solar and storage facilities and our sustainable solutions assets include our investment in a leading global nuclear services business and a portfolio of investments in carbon capture and storage capacity, agricultural renewable natural gas, materials recycling and eFuels manufacturing capacity, among others.
Investors can access the portfolio either through Brookfield Renewable Partners L.P. (NYSE: BEP; TSX: BEP.UN), a Bermuda-based limited partnership, or Brookfield Renewable Corporation (NYSE, TSX: BEPC), a Canadian corporation.
Brookfield Renewable is the flagship listed renewable power and transition company of Brookfield Asset Management, a leading global alternative asset manager headquartered in New York, with over
| Contact information: | |
| Media: | Investors: |
| Simon Maine | Alex Jackson |
| +44 7398 909 278 | +1 (416) 649-8172 |
| simon.maine@brookfield.com | alexander.jackson@brookfield.com |
Cautionary Statement Regarding Forward-looking Statements
Note: This news release contains forward-looking statements and information within the meaning of Canadian securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements can be identified by the use of words such as “will”, “expected”, “intend”, or variations of such words and phrases. Forward-looking statements in this news release include statements regarding the closing, the terms and the use of proceeds of the offering of Notes. Although Brookfield Renewable believes that such forward-looking statements and information are based upon reasonable assumptions and expectations, no assurance is given that such expectations will prove to have been correct. The reader should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Brookfield Renewable to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. Except as required by law, Brookfield Renewable does not undertake any obligation to publicly update or revise any forward-looking statements or information, whether written or oral, whether as a result of new information, future events or otherwise.
FAQ
What is the size and interest rate of Brookfield Renewable's (BEP) new green bond offering?
What credit ratings have been assigned to BEP's Series 19 Notes?
How will Brookfield Renewable (BEP) use the proceeds from the green bond issuance?
When is the expected closing date for BEP's Series 19 Notes offering?
