FortisBC's inaugural Green Bond issuance to mark new step for sustainability
Company is seeking to issue a Green Bond to support its green initiatives
SURREY, BC, July 6, 2020 /CNW/ - FortisBC Energy Inc., FortisBC's natural gas utility and subsidiary of Fortis Inc. (TSX/NYSE: FTS) announced a plan today to complete a public offering of a Green Bond, a specialized investment targeted to support projects and activities that promote environmental sustainability. Upon successful issuance, the bond is expected to be the first Green Bond for a natural gas provider in Canada.
The debt will be issued under FortisBC's Green Bond Framework and will allow the company to finance or refinance, in part or in full, new or existing projects that offer environmental benefits. The framework received a second-party opinion from CICERO Shades of Green, which verified that it aligned with the Green Bond Principles from the International Capital Markets Association. The framework outlines five eligible project categories to which the proceeds of a Green Bond can be allocated:
- Renewable Energy – investing in geothermal, hydrogen, wind and solar projects.
- Renewable Natural Gas (RNG) – investing in projects involving RNG, bio-methane and other renewable sources and includes financial incentives provided to customers.
- Energy Efficiency – includes projects that reduce energy consumption, greenhouse gas emissions, or improve overall energy efficiency as well as supporting research and energy use studies.
- Pollution Prevention and Control – providing financial incentives to customers in the marine and commercial transportation sector to convert their engines to cleaner fuels such as compressed natural gas and liquefied natural gas.
- Clean Transportation – investing in clean energy transportation like electric vehicles and charging infrastructure.
By issuing Green Bonds, FortisBC is taking further action to invest in projects that deliver environmental benefits, including reducing greenhouse gas emissions. These investments may contribute to the achievement of FortisBC's ambitious 30BY30 target to reduce its customers' greenhouse gas emissions by 30 per cent by the year 2030. These investments also demonstrate a long term commitment from FortisBC to support environmentally sustainable projects and a cleaner energy future for British Columbia.
To learn more about a FortisBC Green Bond, visit the investor centre section of fortisbc.com.
FortisBC Energy Inc. is a regulated utility focused on providing safe and reliable energy, including natural gas, propane and thermal energy solutions. FortisBC Energy Inc. employs more than 1,800 British Columbians and serves approximately 1,040,720 customers in 135 B.C. communities. FortisBC Energy Inc. owns and operates approximately 49,000 kilometres of natural gas transmission and distribution pipelines. FortisBC Energy Inc. is a subsidiary of Fortis Inc., a leader in the North American regulated electric and gas utility industry. FortisBC uses the FortisBC name and logo under license from Fortis Inc. For further information visit www.fortisinc.com.
Forward Looking Information
Certain statements in this news release contain forward-looking information within the meaning of applicable securities laws in Canada ("forward-looking information"). The forward-looking information in this news release includes, but is not limited to, statements regarding FortisBC's intention to issue Green Bonds and its expectation to allocate the net proceeds of such issuance to finance new or existing projects that offer environmental benefits.
The forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from results anticipated by the forward-looking information. These factors include risks relating to the offering and closing of the issuance of the Green Bonds and the other risks described in FortisBC's most recent Annual Information Form, Management's Discussion & Analysis and short form base shelf prospectus dated April 9, 2020, including any prospectus supplements filed in connection with an offering of Green Bonds.
All forward-looking information in this news release is qualified in its entirety by this cautionary statement and, except as required by law, FortisBC undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date hereof.
SOURCE FortisBC
MEDIA CONTACT: Lauren Lea, Corporate Communications Specialist, FortisBC, Phone: 604-312-8158, Email: [email protected], fortisbc.com, @fortisBC, 24-hour media line: 1-855-322-6397
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