Scotiabank and RBC to underwrite Hydro One sale
by The Canadian Press
Passage of the Liberals' omnibus budget bill cleared the way for the much-criticized sale of 60 per cent of Hydro One
TORONTO—Ontario’s Liberal government has selected Scotiabank and RBC Capital Markets as underwriters for its controversial initial public offering of Hydro One.
Passage of the Liberals’ omnibus budget bill earlier this month cleared the way for the sale of 60 per cent of Hydro One, the giant transmission utility that also serves as a local electricity distributor for 1.3 million customers.
The government hopes to raise $9 billion from the partial sale, with $5 billion earmarked for hydro debt and $4 billion going to fund public transit projects.
The sale will begin with an IPO of 15 per cent.
The fees for Scotiabank and RBC Capital Markets will be one per cent for institutional investors and three per cent for retail investors.
The passage of the budget bill also removed oversight by legislative officers such as the auditor general and ombudsman, a move both opposition parties have criticized.
Premier Kathleen Wynne has said the Liberals took steps to protect the public by ensuring that no one individual will own more than 10 per cent of Hydro One, that the Ontario Energy Board will continue to set prices, and that the government would retain control of the utility by owning at least 40 per cent.