Brookefield Renewables - Outgoing CEO, Sachin Shah
Outgoing CEO, Sachin Shah
Source: Finance Colombia
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  • Brookfield Renewable (BEP.UN) is issuing C$425 million in medium term green bonds, to raise funds for debt repayments and future investment
  • The green bonds, which are connected to Brookfield’s environmentally beneficial and renewable asset portfolio, bear an interest rate of 3.33 per cent per annum
  • This represents the company’s fifth corporate-level green bond offering in Canada, which currently holds a BBB+ rating from Standard & Poor
  • Brookfield is allocating a portion of the proceeds to the redemption of its previous 4.79 per cent medium-term notes
  • Brookfield Renewable (BEP.UN) is up 0.64 per cent and is trading at $59.81 per share

Brookfield Renewable (BEP.UN) is issuing C$425 million in medium term green bonds, to raise funds for debt repayments and future investments. 

The green bonds, which are connected to Brookfield’s environmentally beneficial and renewable asset portfolio, bear an interest rate of 3.33 per cent per annum.

The company’s subsidiary, Brookfield Renewable Partners, will act as issuer, with the bonds guaranteed by Brookfield Renewable and a series of other key subsidiaries. 

This represents the company’s fifth corporate-level green bond offering in Canada, which currently has a BBB+ rating from Standard & Poor, a global benchmark in bond valuations. 

Brookfield Renewable plans to use the proceeds to repay indebtedness, which resulted from a series of recent investments and portfolio expansions. This will include the early redemption of the previous 4.79 per cent medium-term notes, which were set to expire to February 2022.

Sachin Shah, CEO of Brookfield Renewable commented on the company’s latest issuance.

“We are pleased to announce the issuance of our fifth corporate-level green bond offering, which brings our total green issuances to date to over $3 billion and further strengthens our position as a leading issuer of sustainable capital.

“The issuance meaningfully extends the duration of our corporate debt profile while reducing our cost of borrowing and reflects the high-quality nature of our renewable power portfolio,” he said.

The news follows a net loss of $58.9 million in the company’s latest quarterly report, as well as a merger with solar energy company Terraform Power.

Brookfield Renewable (BEP.UN) is up 0.64 per cent and is trading at $59.81 per share at 12:49pm EDT.

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