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Capital Power releases inaugural Green Financing Framework

Capital Power releases inaugural Green Financing Framework

Sustainability-focused financing to fund development of clean energy technology to power a sustainable future for people and planet

Capital Power Corporation has released its inaugural Green Financing Framework under which the Company will issue green bonds and green loans. The Framework reflects the Company’s commitment to allocate capital towards wind, solar and storage projects that align with the Company’s sustainability targets and support its strategy to be net-carbon neutral by 2050.

“Establishing a Green Financing Framework exemplifies Capital Power’s commitment to powering a sustainable future for people and planet. The development of wind, solar and storage projects is a key pillar of our growth and decarbonization strategy,” said Sandra Haskins, Senior Vice President, Finance and Chief Financial Officer. “The Framework provides transparency to our stakeholders as we execute on our strategy.”

The Framework sets out the guidelines for Capital Power’s Green Financing in accordance with the Green Bond Principles 2021 issued by the International Capital Markets Association (“ICMA”) and the Green Loan Principles 2021 issued by the Loan Market Association and Loan Syndications and Trading Association. The Framework has also been designed to align with the practices, actions, and disclosures recommended in the ICMA’s Climate Transition Finance Handbook 2020.

See related article: CEMEX Continues to Lead in Climate Action With Its New Green Financing Framework

Under the Framework, the net proceeds from a Green Financing will be allocated or used to finance or re-finance, in part or in full, new and/or existing green investments and expenditures made by the Company that meet the Renewable Energy category, as defined in the Framework, and are aligned with the United Nations Sustainable Development Goals: affordable and clean energy; industry, innovation and infrastructure; and climate action.

Until the Green Financing issued under this Framework is fully allocated, Capital Power will report publicly on the use of the proceeds within one year of issuance and annually thereafter. Both the Allocation and Impact Reports will be posted on the Company’s website. An external verification of the Allocation Report will be provided by an independent external auditor on an annual basis until the complete allocation of proceeds.

Sustainalytics reviewed the Framework and provided a second-party opinion confirming that the Framework is credible and impactful and aligns with the Green Bond Principles 2021 and Green Loan Principles 2021. BMO Capital Markets advised Capital Power on the development of the Framework as lead structuring agent.

The Green Financing Framework and the second-party opinion from Sustainalytics can be found on the Company’s website.

Source: Capital Power


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