Brookfield Renewable announced its plan to issue C$200 million in Fixed-to-Fixed Reset Rate Subordinated Hybrid Notes due March 12, 2055 (the “Hybrid Notes”).
The Hybrid Notes will carry an annual interest rate of 5.450% until March 12, 2030, after which the rate will reset every five years based on the five-year Government of Canada yield plus a spread of 2.499%. These notes will receive the same rating treatment as Brookfield Renewable’s preferred shares and preferred units.
Issued by Brookfield Renewable Partners ULC, a subsidiary of Brookfield Renewable, the Hybrid Notes will be fully and unconditionally guaranteed by Brookfield Renewable and certain key holding subsidiaries. The issuance will be made under a base shelf prospectus dated September 8, 2023, and a prospectus supplement dated December 9, 2024. Closing is expected around December 12, 2024, subject to standard conditions.
This marks Brookfield Renewable’s fifteenth green-labeled corporate securities issuance in North America and the fourth under its 2024 Green Financing Framework (the “Green Financing Framework”). Proceeds will support Eligible Investments, as defined in the framework, including the repayment of related indebtedness. Details on the framework are available on Brookfield Renewable’s website and in the prospectus supplement.
The offering is led by a syndicate of underwriters, including BMO Capital Markets, CIBC Capital Markets, Scotiabank, RBC Capital Markets, TD Securities, National Bank Financial Markets, Desjardins, BNP Paribas, Mizuho Securities, MUFG, SMBC Nikko, and iA Private Wealth Inc.
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