TORONTO — Ontario Power Generation (OPG) has become the first company in the Canadian power and utilities sector to incorporate sustainability targets into its corporate financing needs and the first Canadian energy company to secure a sustainability linked loan.
The move reflects OPG’s position on sustainability and reducing credit costs.
Mizuho Americas is the sole lead arranger and administrative agent for the US$750 million 364-day Senior Unsecured revolving standby credit facility and RBC is the Sustainability Structuring Agent. This facility supports OPG’s short-term liquidity needs.
OPG’s newly-released 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 the company operates achieve net-zero carbon economies by 2050, indicates a release.
“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 OPG president and CEO Ken Hartwick in a statement. “Incorporating sustainability targets into financing is a natural next step as we work toward those goals.”