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RE Royalties Ltd., a global leader in renewable energy royalty-based financing is pleased to announce the publication of its 2024 Green Bond Framework (the “Framework”), assessed as Dark Green, and 2023 Green Bond Report (the “Report”), which highlights the Company’s commitment to fostering a cleaner, greener future.
The Framework provides details on how the Company’s Green Bond proceeds will be used to finance or re-finance investments in renewable energy, energy efficiency, energy management, and clean transportation. The Framework received an opinion from S&P Global Ratings (“S&P”), a leading provider of second party opinions on green financings, under the Shades of Green analytical approach, formerly part of CICERO Shades of Green. The shades indicate how consistent a financial investment is with a low-carbon climate resilient (LCCR) future. S&P assessed the Framework as “Dark Green,” being the highest, or most consistent with an LCCR future. S&P concluded that the Framework is aligned with the Green Bond Principles issued by the International Market Association (ICMA) 2021.
A copy of the Company’s Framework can be found on RE Royalties’ website, and a copy of S&P’s report can be found on S&P’s website.
The Company also published its 2023 Green Bond Report, which outlines how proceeds from its Series 1, 2 and 3 Green Bonds were utilized, and invested in renewable energy and energy storage projects in Canada, the United States, Mexico, and Chile. The Report has also been reviewed by S&P Global Ratings, which found that the allocation of proceeds and reporting aligns with the Green Bond Framework.
The Report encompasses a listing of eligible investments, alongside the current allocation of funds to each eligible category. Additionally, it discloses amounts repaid from maturing eligible investments.
Key highlights of the Report include:
- As of December 31, 2023, net proceeds of $9.1 million from the Series 1 Green Bonds have been 100% allocated, net proceeds of $9 million from the Series 2 Green Bonds have been 100% allocated and net proceeds of $15.7 million have been 85% allocated (including signed amounts).
- Proceeds from the Series 1, 2 and 3 Green Bonds were made across 10 investments comprised of 56% energy storage, 40% solar and 4% wind.
- The projects funded are expected to generate positive environmental impacts, including annual clean energy generation of approximately 638,000 megawatt hours equivalent to powering 91,000 homes with clean electricity, and annual greenhouse gas reduction of 406,000 tonnes of carbon dioxide equivalent. This emission reduction is equivalent to removing approximately 97,000 vehicles from the road, or planting 6.7 million trees.
A copy of the Company’s Report and a copy of S&P’s opinion on the Report can be found on RE Royalties’ website.
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“We are pleased to publish and report on the work we have done since our inaugural Green Bond issuance. This updated Framework and corresponding Report is a culmination of all the hard work by our team and clients over several years, and the impact these investments have in providing clean energy and helping mitigate some of the impacts of climate change. We thank our shareholders and bondholders for their continued support of this important work and will continue to build upon the investments we have made” said Bernard Tan, CEO of RE Royalties.