A Global First: BMO Supports Bruce Power with World’s First Nuclear Green Financing Framework

Acting as Co-Lead Green Structuring Agent, BMO Financial Group announced the successful issuance of CAD $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 (ICMA) and the Green Loan Principles issued by the Loan Market Association (LMA) and Loan Syndications and Trading Association (LSTA) –  ensuring the proceeds are exclusively allocated to green projects and activities that promote environmental sustainability and deliver clear environmental benefits.

CICERO Shades of Green, an internationally-recognized leading provider of independent review 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, acknowledging the role of nuclear power in mitigating climate change and recognizing Bruce Power’s strong risk management processes.

“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. “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.”

Browse The Complete News About Fintech : Payhawk Raises $112 Million in the Second Largest Series B in Central and Eastern Europe

“We’re proud to partner with Bruce Power to build a green framework that facilitates the alignment of the company’s business and financing activities to support nuclear power’s critical role in mitigating climate change,” said Jonathan Hackett, Head, Sustainable Finance, BMO Capital Markets. “Providing access to sustainable financing and being a lead partner in our clients’ transition to a net-zero future is part of BMO’s purpose to Boldly Grow the Good in business and life.”

A track record of innovative firsts

BMO continues to work closely with clients in their transition to a more sustainable future as part of its commitment to deploy $300 billion in sustainable lending and underwriting to companies pursuing sustainable outcomes by 2025. In December 2019, BMO provided Maple Leaf Foods Inc. with Canada’s first sustainability-linked loan. Since then BMO has completed sustainability and green financing frameworks, green and sustainability-linked loans for companies in a range of sectors, from manufacturing and packaging to metals & mining and energy. This year, as part of its Climate Ambition to be its clients’ lead partner in the transition to a net-zero world, BMO established a dedicated Energy Transition Group and the BMO Climate Institute.

BMO’s leadership on sustainability has been recognized on numerous rankings:

• Ranked 15^th on The Wall Street Journal’s 2020 list of the 100 Most Sustainably Managed Companies in the World
• Top North American bank on Corporate Knights’ 2021 Global 100 Most Sustainable Corporations in the World
• Ranked on the World Index of the 202I Dow Jones Sustainability Indices – one of five Canadian companies and two North American banks
• Scored an A- on the 2020 CDP Climate Change disclosure
• Ethisphere Institute’s 2020 list of the World’s Most Ethical Companies
• Corporate Knights 2021 Best 50 Corporate Citizens in Canada