Hydro One's $750 Million Sustainable Bond: A Green Leap Forward

Hydro One, Ontario's largest electricity transmission and distribution company, recently priced an offering of $750 million of Medium Term Notes under its Sustainable Financing Framework. This move is a testament to the company's commitment to sustainability and responsible investing. Let's delve into the details of this green bond offering and its implications.

Hydro One's $750 million offering aligns with its sustainable financing framework, with proceeds allocated to eligible green and social projects. The company plans to use CAD 375 million for green and social projects, and CAD 375 million for green projects alone. This aligns with the framework's categories: clean energy, energy efficiency, clean transportation, biodiversity, and socio-economic advancement of Indigenous Peoples.



Hydro One's commitment to annual updates on the use of net proceeds contributes to transparency and accountability in its sustainable financing efforts. This practice allows investors and stakeholders to track the allocation of funds to eligible green and social projects, ensuring that the proceeds are used as intended. By providing detailed reports on the allocation per eligible category, the share of unallocated proceeds, and project descriptions, Hydro One fosters trust and demonstrates its commitment to sustainable and responsible investing. This level of disclosure aligns with market practice and helps Hydro One maintain its reputation as a leader in sustainable financing.

Hydro One's recent offering is a significant step towards achieving its sustainability goals. By investing in clean energy projects, the company can reduce its carbon footprint and contribute to Ontario's low-carbon energy mix. Additionally, energy efficiency projects can optimize energy usage, minimize losses, and decrease reliance on fossil fuels. These investments not only align with Hydro One's net-zero emissions target by 2050 but also contribute to the broader goal of a sustainable future.

In conclusion, Hydro One's $750 million offering under its Sustainable Financing Framework is a green leap forward for the company and the broader energy sector. By allocating funds to eligible green and social projects, Hydro One demonstrates its commitment to sustainability and responsible investing. As the company continues to update stakeholders on the use of net proceeds, it fosters transparency and accountability, further solidifying its position as a leader in sustainable financing.