Hydro One has successfully closed amending agreements to its syndicated lines of credit to incorporate ESG targets. The agreements now include a pricing adjustment which can increase or decrease Hydro One’s cost of funding based on its performance on certain Sustainability Performance Measures. These measures are related to Hydro One’s sustainability goals in the priority areas of:
- Community: increase Indigenous procurement spend to 5 per cent of Hydro One’s purchases of materials and services by 2026
- Planet: convert all light-duty gasoline-powered vehicles (sedans and SUVs) to electric vehicles and hybrids by 2030
- People: achieve at least 30 per cent female executives and board members
“Integrating our financing strategy with our ESG goals shows our strong commitment to standing up for people, the planet and communities across Ontario. We are especially proud to be the first organization in Canada to incorporate a Sustainability Performance Measure that is based on increasing Indigenous procurement spend. We understand that our long-term performance depends on incorporating sustainability into all aspects of our business and we are committed to becoming an industry leader in ESG,” said Mark Poweska, President and CEO, Hydro One.
CIBC and RBC acted as the Co-Sustainability Structuring Agents for both of the Hydro One Limited and Hydro One Inc. lines of credit.
“CIBC is proud to partner with Hydro One as Co-Sustainability Structuring Agent to evolve their lines of credit into sustainability-linked loans, and we applaud Hydro One for its market-leading lens on Indigenous procurement and commitment to environmental, social, and corporate governance,” said Eric Métivier, Head, Corporate Banking – Canada at CIBC Capital Markets. “With our strong leadership position in the Canadian market, this partnership with Hydro One is one way we’re helping to enable a more sustainable and inclusive economy.”
“RBC is proud to partner with HydroOne as Co-Sustainability Structuring Agent on these lines of credit, establishing a pricing structure linked to meaningful and ambitious sustainability performance targets that are aligned with Hydro One’s strategic priorities,” said Patti Shugart, Head of Global Corporate Banking at RBC Capital Markets. “RBC’s approach to sustainability and our focus on offering clients best-in-class advice tailored to their needs are central to delivering on our stated purpose to help clients thrive and communities prosper.”