Fortis Inc. Secures CAD 750 Million Funding for Diversified Regulated Utility Holdings

Fortis Inc. has received CAD 750 million in funding. The Canada-based diversified regulated electric and gas utility holding company operates in North America, the Caribbean, and Belize. Its regulated utility businesses include ITC Holdings Corp., UNS Energy Corporation, FortisBC Energy Inc., and Eastern Canadian and Caribbean utilities. Fortis Inc. is a diversified regulated electric and gas utility holding company.

Fortis Inc., a leading diversified regulated electric and gas utility holding company, has successfully closed a CAD 750 million offering of 5.100% fixed-to-fixed rate subordinated notes. The offering, which was executed on September 4, 2025, is part of the company's ongoing strategy to optimize its capital structure [1].

The notes, which are due December 4, 2055, were priced at 5.100% and are expected to be used by Fortis to reduce its borrowings under its revolving corporate credit facility and for general corporate purposes [1]. The offering was conducted on a best efforts basis and was led by a syndicate of agents, with BMO Nesbitt Burns Inc. and Scotia Capital Inc. acting as joint bookrunners, along with several other co-managers [2].

Fortis Inc. operates in North America, the Caribbean, and Belize, with regulated utility businesses including ITC Holdings Corp., UNS Energy Corporation, FortisBC Energy Inc., and Eastern Canadian and Caribbean utilities. The company's 9,700 employees serve utility customers in five Canadian provinces, ten U.S. states, and the Caribbean [1].

This offering is part of a broader trend in the utility sector where companies are turning to private placements to raise capital. For instance, AltaGas Ltd. recently priced C$200 million of 5.375% fixed-to-fixed rate junior subordinated notes due December 5, 2055 [3].

Investors and financial professionals should closely monitor Fortis' ongoing financial health and future capital raising activities, as they may impact the company's debt profile and overall financial stability.

References:
[1] https://www.ainvest.com/news/fortis-closes-750m-fixed-fixed-rate-subordinated-notes-offering-2509/
[2] https://www.globenewswire.com/news-release/2025/09/04/3144716/0/en/Fortis-Inc-Announces-Closing-of-Offering-of-Fixed-To-Fixed-Rate-Subordinated-Notes.html
[3] https://www.nasdaq.com/articles/altagas-prices-c-200-mln-hybrid-notes-offering-5375-due-2055