Hydro One Inc. Launches $1.1 Billion Medium Term Notes for Sustainable Development
On August 20, 2025, Hydro One Limited, the largest electricity transmission and distribution company in Ontario, made a significant announcement regarding the pricing of its wholly-owned subsidiary, Hydro One Inc.'s offering of Medium Term Notes. This offering is primarily distinguished by its commitment to sustainable financing, totaling an impressive $1.1 billion aimed at funding eligible green projects. These Medium Term Notes are divided into different series:
Pricing details reveal that each series will be issued at slightly below their face values, ensuring competitive terms for investors. The proceeds from this issuance are expected to net approximately $1.1 billion, with the offering closing on August 25, 2025.
These notes are being introduced under Hydro One’s Sustainable Financing Framework, established on August 13, 2024. Hydro One has expressed intent to allocate the net proceeds from the Notes to either finance or refinance projects that qualify as environmentally sustainable according to this framework. Until such allocations are made, Hydro One may utilize these proceeds for managing existing debts or investing in liquid assets, as per their internal liquidity strategies. Furthermore, it is noted that while the company aims to channel funds into green projects, failure to do so does not constitute a default under the trust indenture governing the Notes.
The offering is being conducted on a best-efforts basis among various provinces in Canada, supported by a syndicate of agents including major financial institutions like BMO Nesbitt Burns, National Bank Financial, TD Securities, and others, ensuring comprehensive market reach.
Hydro One Inc.'s offerings are aligned with their broader goal of creating a sustainable energy landscape. With assets valued at approximately $36.7 billion as of December 31, 2024, and annual revenues hitting $8.5 billion in 2024, Hydro One reflects a robust commitment to powering Ontario's communities. Their workforce of over 10,100 employees is dedicated to maintaining a reliable electricity system, which is critical to supporting local economies.
In 2024 alone, Hydro One committed $3.1 billion towards enhancing its transmission and distribution infrastructure while contributing an additional $2.9 billion to local economies through procurement of goods and services. The organization prioritizes community investment and sustainable initiatives, underlining their corporate responsibility in promoting a greener future.
For investors and stakeholders, Hydro One has made it clear that detailed information regarding the offering can be accessed through their base shelf prospectus filed with Canadian securities regulatory authorities. Potential investors are encouraged to review the pricing supplements associated with the different series of Notes before making any investment decisions. These documents contain important details regarding the offerings, including financial metrics and the strategic direction of Hydro One's funding into sustainable projects.
This announcement exemplifies Hydro One's strategic direction towards blending financial commitment with sustainability goals, fostering a positive impact on both the economy and the environment in Ontario. While the initiative marks a progressive step for Hydro One, investors should remain cognizant of the forward-looking statements that accompany such announcements, as they stipulate potential changes and risks inherent to market dynamics. The commitment to transparency remains evident throughout Hydro One’s operational strategy, aligning with their mission to provide safe and reliable electricity to an ever-growing number of customers in Ontario.
This issuance of Medium Term Notes not only reflects Hydro One's financial robustness but also positions them as a forward-thinking leader in sustainable energy financing, paving the way for environmentally responsible investment opportunities in Canada’s evolving energy landscape.
- - Series 61 Notes: $450 million with a 3.94% rate, maturing in 2032.
- - Series 62 Notes: $300 million with a 4.30% rate, maturing in 2035.
- - Series 63 Notes: $350 million with a 4.95% rate, maturing in 2055.
Pricing details reveal that each series will be issued at slightly below their face values, ensuring competitive terms for investors. The proceeds from this issuance are expected to net approximately $1.1 billion, with the offering closing on August 25, 2025.
These notes are being introduced under Hydro One’s Sustainable Financing Framework, established on August 13, 2024. Hydro One has expressed intent to allocate the net proceeds from the Notes to either finance or refinance projects that qualify as environmentally sustainable according to this framework. Until such allocations are made, Hydro One may utilize these proceeds for managing existing debts or investing in liquid assets, as per their internal liquidity strategies. Furthermore, it is noted that while the company aims to channel funds into green projects, failure to do so does not constitute a default under the trust indenture governing the Notes.
The offering is being conducted on a best-efforts basis among various provinces in Canada, supported by a syndicate of agents including major financial institutions like BMO Nesbitt Burns, National Bank Financial, TD Securities, and others, ensuring comprehensive market reach.
Hydro One Inc.'s offerings are aligned with their broader goal of creating a sustainable energy landscape. With assets valued at approximately $36.7 billion as of December 31, 2024, and annual revenues hitting $8.5 billion in 2024, Hydro One reflects a robust commitment to powering Ontario's communities. Their workforce of over 10,100 employees is dedicated to maintaining a reliable electricity system, which is critical to supporting local economies.
In 2024 alone, Hydro One committed $3.1 billion towards enhancing its transmission and distribution infrastructure while contributing an additional $2.9 billion to local economies through procurement of goods and services. The organization prioritizes community investment and sustainable initiatives, underlining their corporate responsibility in promoting a greener future.
For investors and stakeholders, Hydro One has made it clear that detailed information regarding the offering can be accessed through their base shelf prospectus filed with Canadian securities regulatory authorities. Potential investors are encouraged to review the pricing supplements associated with the different series of Notes before making any investment decisions. These documents contain important details regarding the offerings, including financial metrics and the strategic direction of Hydro One's funding into sustainable projects.
This announcement exemplifies Hydro One's strategic direction towards blending financial commitment with sustainability goals, fostering a positive impact on both the economy and the environment in Ontario. While the initiative marks a progressive step for Hydro One, investors should remain cognizant of the forward-looking statements that accompany such announcements, as they stipulate potential changes and risks inherent to market dynamics. The commitment to transparency remains evident throughout Hydro One’s operational strategy, aligning with their mission to provide safe and reliable electricity to an ever-growing number of customers in Ontario.
This issuance of Medium Term Notes not only reflects Hydro One's financial robustness but also positions them as a forward-thinking leader in sustainable energy financing, paving the way for environmentally responsible investment opportunities in Canada’s evolving energy landscape.
Topics Financial Services & Investing）
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