Representing Northland’s Second Sustainability-Linked Financing and EDC’s Inaugural Sustainability-Linked Transaction
TORONTO- BNP Paribas, a leading global bank, announced today that it has recently closed an amendment to add sustainability-linked incentives to its Letter of Credit (“LC”) Facility with renewable power producer, Northland Power Inc. (“Northland”).
Northland converted its $50 million bilateral LC Facility with BNP Paribas to a sustainability-linked agreement, which is backed by Canada’s export credit agency, Export Development Canada (“EDC”). This marks EDC’s first sustainability-linked LC facility, which will support Northland’s current and future renewable energy growth strategy, including offshore wind projects across the globe. EDC’s bonding solutions, offered in partnership with private sector financial institutions, help free up the working capital that companies need to operate.
This LC facility also represents Northland’s second sustainability-linked credit facility, after Northland renewed, extended and converted its CAD $1 billion revolving credit facility (“RCF”) to a sustainability-linked loan (“SLL”) structure in September 2021. The SLL structure aligns with Northland’s Green Financing Framework, unveiled in the first half of 2021. The five-year RCF features a pair of KPIs with targets linked to increasing Northland’s renewable energy generation and reducing carbon intensity. BNP Paribas acted as a co-sustainability structuring agent on the SLL.
“EDC is pleased to partner with BNP Paribas through our bonding program to support Northland Power as it scales up its renewable power generation capacity,” said Guillermo Freire, Senior Vice President, Mid-Market, and responsible for EDC’s cleantech practice. “This sustainability-linked LC facility for Northland Power is a good example of how industry partners can work together to help Canadian companies grow internationally, support the global energy transition, and help build an innovative and sustainable future.”
Northland continues to progress its plan to double its renewable power generating capacity by the end of the decade. Northland’s plan includes developing and operating a portfolio of large- scale offshore wind projects in Europe and Asia, further adding to its offshore wind portfolio, where it is already the fourth largest owner and operator generating capacity globally.
“BNP Paribas is very proud to be a strategic partner to corporations actively participating in the fight against climate change. We are dedicated to working with our corporate clients to identify tailored solutions that align with their specific efforts and commitments toward achieving their ESG goals”, said Rod O’Hara, Head of Canada Corporate Coverage of BNP Paribas. “We couldn’t be happier to continue our partnership with Northland Power, as the company progresses on its sustainability journey, and to support EDC with its inaugural sustainable transaction.”
BNP Paribas acted as Sole Structuring Agent. Elsewhere in Canada, the Bank has played key roles in several noteworthy sustainability-linked transactions. By using innovative financing solutions, Canadian corporates have a unique opportunity to create the economy of the future.
About BNP Paribas in Canada
For over 60 years, BNP Paribas in Canada has been helping Canadian businesses and institutions grow by offering them a full range of specialized financial services and investment products. With over 1,250 employees in offices in Montreal and Toronto, BNP Paribas in Canada combines a clear understanding of the Canadian landscape with global expertise.
About BNP Paribas
BNP Paribas is the European Union’s leading bank and key player in international banking. It operates in 65 countries and has nearly 190,000 employees, including nearly 145,000 in Europe. The Group has key positions in its three main fields of activity: Commercial, Personal Banking & Services for the Group’s commercial & personal banking and several specialised businesses including BNP Paribas Personal Finance and Arval ; Investment & Protection Services for savings, investment and protection solutions ; and Corporate & Institutional Banking, focused on corporate and institutional clients. Based on its strong diversified and integrated model, the Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, BNP Paribas has four domestic markets: Belgium, France, Italy and Luxembourg. The Group is rolling out its integrated commercial & personal banking model across several Mediterranean countries, Turkey, Eastern Europe as well as via a large network in the western part of the United States. As a key player in international banking, the Group has leading platforms and business lines in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.
BNP Paribas has implemented a Corporate Social Responsibility approach in all its activities, enabling it to contribute to the construction of a sustainable future, while ensuring the Group’s performance and stability.
Learn more: https://group.bnpparibas/en/
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage. As international risk experts, we equip Canadian companies with the tools they need – the trade knowledge, financing solutions, equity, insurance, and connections – to grow their business with confidence. Underlying all our support is a commitment to sustainable and responsible business.
For more information and to learn how we can help your company, call us at 1-800-229-0575 or visit https://www.edc.ca.
About Northland Power
Northland Power is a global power producer dedicated to helping the clean energy transition by producing electricity from clean renewable resources. Founded in 1987, Northland has a long history of developing, building, owning and operating clean and green power infrastructure assets and is a global leader in offshore wind. In addition, Northland owns and manages a diversified generation mix including onshore renewables, efficient natural gas energy, as well as supplying energy through a regulated utility.
Headquartered in Toronto, Canada, with global offices in eight countries, Northland owns or has an economic interest in 3.2 GW (net 2.8 GW) of operating capacity. The Company also has a significant inventory of projects in construction and in various stages of development encompassing over 14 GW of potential capacity.
Publicly traded since 1997, Northland’s common shares, Series 1, Series 2 and Series 3 preferred shares trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.PR.B and NPI.PR.C, respectively.
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