BMO’s nuclear green financing to support Bruce Power
BMO committed to deploy $300 billion in sustainable lending and underwriting to companies pursuing sustainable outcomes by 2025.
TORONTO— Bruce Power, Ontario’s private sector power provider, has launched a green finance framework with nuclear use of proceeds.
According to a statement, Bruce Power is committed to mitigate climate change and enhance a clean, safe and sustainable way of life for present and future generations. BMO committed to deploy $300 billion in sustainable lending and underwriting to companies pursuing sustainable outcomes by 2025.
Acting as Co-Lead Green Structuring Agent, BMO Financial Group announced the issuance of $500 million in green bonds under the framework, which is designed to guide future issues of green bonds with a focus on Bruce Power’s Life-Extension Program and investments related to increasing the output of nuclear units and extending the plant’s life beyond 2060.
The framework sets out the guidelines in accordance with the Green Bond Principles issued by the International Capital Markets Association and the Green Loan Principles issued by the Loan Market Association and Loan Syndications and Trading Association —ensuring the proceeds are exclusively allocated to green projects and activities that promote environmental sustainability and deliver clear environmental benefits.
CICERO Shades of Green, a provider of reviews and second-party opinions on green financing frameworks, has given Bruce Power’s Green Finance Framework the highest possible governance score of Excellent, and an overall designation of CICERO Medium Green.
“Clean nuclear power is crucial to fighting climate change, and today’s announcement marks another industry-leading step in the company’s environmental, social and governance strategy,” said Mike Rencheck, Bruce Power’s President and CEO in a statement.
“One of the largest greenhouse gas emission reduction initiatives in the world was the phase-out of coal-fired electricity in Ontario, and Bruce Power was at the heart of making this a reality by providing 70 per cent of the energy the province needed to achieve this goal.”