EDMONTON, Alberta, Aug. 15, 2022 (GLOBE NEWSWIRE) — Capital Power Corporation (“Capital Power” or “the Company”) (TSX: CPX) has released its first Green Financing Framework (“Framework”) under which the Corporation will issue green bonds and green loans (“green financing”). The framework reflects the company’s commitment to allocate capital to wind, solar and storage projects that align with the company’s sustainability goals and support its strategy to be net carbon neutral by 2050 .
“Establishing a green finance framework exemplifies Capital Power’s commitment to powering a sustainable future for people and the planet. Developing wind, solar and storage projects is a critical 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 our strategy.”
The framework sets out 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 information recommended in ICMA’s Climate Transition Finance Handbook 2020.
Under the framework, the net proceeds of green financing will be earmarked or used to finance or refinance, in part or in whole, 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 UN 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. Allocation and impact reports will be posted on the company’s website. An external verification of the allocation report will be carried out by an independent external auditor on an annual basis until the funds have been fully allocated.
Sustainalytics has reviewed the framework and provided a second-party opinion confirming that the framework is credible and impactful and aligns with the 2021 Green Bond Principles and the 2021 Green Lending Principles. BMO Capital Markets advised Capital Power on the development of the framework as the main structuring agent.
Sustainalytics’ green finance framework and second-party opinion can be viewed on the company’s website.
Certain information contained in this press release is forward-looking within the meaning of Canadian securities laws with respect to anticipated financial and operational performance, events or strategies. Forward-looking information or statements are provided to inform shareholders and potential investors of the Company of management’s assessment of Capital Power’s future plans and operations. This information may not be suitable for other purposes. Forward-looking information in this press release is generally identified by words such as want, anticipate, believe, plan, intend, target and expect, with similar words suggesting future results.
Material forward-looking information contained in this press release includes expectations regarding: (i) the Company’s intention to conduct Green Financings, (ii) the use of Green Financing proceeds and the allocation of such proceeds in accordance with Framework, (iii) the impact of Green Finance spending on the achievement of the Company’s decarbonization objectives, and (iv) Allocation and Impact Reports and external verification of Allocation Reports.
These statements are based on certain assumptions and analyzes made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it deems appropriate, including its review businesses and assets purchased. Important factors and assumptions used in making these forward-looking statements relate to: (i) electricity and other energy prices, (ii) performance, (iii) business prospects (including potential renewal of facilities) and opportunities, including growth and investment projects, (iv) status and impact of policy, legislation and regulation, (v) effective tax rates, (vi) availability and sources of capital, and (vii) the ability to obtain required regulatory approvals.
Whether actual results, performance or achievements will be consistent with the Company’s expectations and projections is subject to a number of known and unknown risks and uncertainties that could cause results and actual experience differ materially from the Company’s expectations. These important risks and uncertainties are: (i) variations in electricity, natural gas and carbon prices in the markets in which the Company operates and the use of derivatives, (ii) regulatory and political environments, including including changes in environmental, financial reporting, market structure and tax legislation and the receipt and timing thereof of required regulatory approvals, (iii) the availability and performance of production facilities, including including equipment maintenance, (iv) ability to finance current and future capital and working capital requirements, (v) acquisitions and developments, including timing and costs of regulatory approvals and construction, ( (vi) changes in market prices and fuel availability, (vii) the ability to realize the anticipated benefits of acquisitions, (vii) inherent limitations in reviewing by the Company of the assets acquired, (viii) changes in general economic and competitive conditions, including interest and exchange rate fluctuations, and (ix) changes in the performance and cost of technologies and development new energy efficient technologies, products, services and programs. See “Risks and Risk Management” in the Company’s 2021 MD&A for further discussion of these and other risks.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of endorsement specified. The Company neither undertakes nor accepts any obligation or undertaking to issue updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances about which a such statement is based, except as required by law.
About Capital Power
Capital Power (TSX: CPX) is a growth-oriented, strategically focused North American wholesale power producer in sustainable energy headquartered in Edmonton, Alberta. We build, own and operate high-quality, large-scale generation facilities that include renewable and thermal energy. We have also made significant investments in carbon capture and use to reduce carbon impacts and are committed to going coal-free by 2023. Capital Power has approximately 6,600 MW of power generation capacity in 27 facilities in North America. Projects in advanced development include approximately 385 MW of renewable power generation capacity held in North Carolina and Alberta and an additional 512 MW of natural gas-fired combined cycle capacity from the Genesee 1 and 2 resupply in Alberta.
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