A Global First: BMO Supports Bruce Power with World's First Nuclear Green Financing Framework

Rhea-AI Summary

BMO Financial Group has announced a groundbreaking initiative by acting as Co-Lead Green Structuring Agent for Bruce Power, issuing CAD $500 Million in green bonds under the world's first nuclear green finance framework. This framework aims to allocate funds exclusively to projects that promote environmental sustainability, particularly in Bruce Power's Life-Extension Program. BMO is committed to deploying $300 billion in sustainable lending by 2025, reinforcing its leadership in sustainable finance. The framework has received an 'Excellent' governance score from CICERO Shades of Green.

Positive

• Successful issuance of CAD $500 Million in green bonds under the world's first nuclear green finance framework.
• BMO aims to deploy $300 billion in sustainable lending by 2025.
• CICERO Shades of Green awarded the framework an 'Excellent' governance score, recognizing the role of nuclear power in combating climate change.

Negative

• None.

• Canada's only private-sector nuclear generator produces 30 percent of Ontario's power and is committed to mitigate climate change and enhance a clean, safe and sustainable way of life for present and future generations
• BMO committed to deploy $300 billion in sustainable lending and underwriting to companies pursuing sustainable outcomes by 2025, and to be its clients' lead partner in the transition to a net zero world

TORONTO, Nov. 22, 2021 /PRNewswire/ - Bruce Power, Ontario's leading private sector power provider, has taken another industry-leading step in its environmental, social and governance strategy by launching the world's first green finance framework with nuclear use of proceeds.

Acting as Co-Lead Green Structuring Agent, BMO Financial Group (TSX:BMO) (NYSE:BMO), today announced the successful issuance of CAD $500 Million in green bonds under the framework, which is designed to guide future issues of green bonds with a focus on Bruce Power's Life-Extension Program and investments related to increasing the output of nuclear units and extending the plant's life beyond 2060.

The framework sets out the guidelines in accordance with the Green Bond Principles issued by the International Capital Markets Association (ICMA) and the Green Loan Principles issued by the Loan Market Association (LMA) and Loan Syndications and Trading Association (LSTA) –  ensuring the proceeds are exclusively allocated to green projects and activities that promote environmental sustainability and deliver clear environmental benefits. 

CICERO Shades of Green, an internationally-recognized leading provider of independent review and second-party opinions on green financing frameworks, has given Bruce Power's Green Finance Framework the highest possible governance score of Excellent, and an overall designation of CICERO Medium Green, acknowledging the role of nuclear power in mitigating climate change and recognizing Bruce Power's strong risk management processes.

"Clean nuclear power is crucial to fighting climate change, and today's announcement marks another industry-leading step in the company's environmental, social and governance strategy," said Mike Rencheck, Bruce Power's President and CEO. "One of the largest greenhouse gas emission reduction initiatives in the world was the phase-out of coal-fired electricity in Ontario, and Bruce Power was at the heart of making this a reality by providing 70 per cent of the energy the province needed to achieve this goal."

"We're proud to partner with Bruce Power to build a green framework that facilitates the alignment of the company's business and financing activities to support nuclear power's critical role in mitigating climate change," said Jonathan Hackett, Head, Sustainable Finance, BMO Capital Markets. "Providing access to sustainable financing and being a lead partner in our clients' transition to a net-zero future is part of BMO's purpose to Boldly Grow the Good in business and life."

A track record of innovative firsts

BMO continues to work closely with clients in their transition to a more sustainable future as part of its commitment to deploy $300 billion in sustainable lending and underwriting to companies pursuing sustainable outcomes by 2025. In December 2019, BMO provided Maple Leaf Foods Inc. with Canada's first sustainability-linked loan. Since then BMO has completed sustainability and green financing frameworks, green and sustainability-linked loans for companies in a range of sectors, from manufacturing and packaging to metals & mining and energy. This year, as part of its Climate Ambition to be its clients' lead partner in the transition to a net-zero world, BMO established a dedicated Energy Transition Group and the BMO Climate Institute.

BMO's leadership on sustainability has been recognized on numerous rankings:

• Ranked 15^th on The Wall Street Journal's 2020 list of the 100 Most Sustainably Managed Companies in the World
• Top North American bank on Corporate Knights' 2021 Global 100 Most Sustainable Corporations in the World
• Ranked on the World Index of the 202I Dow Jones Sustainability Indices – one of five Canadian companies and two North American banks
• Scored an A- on the 2020 CDP Climate Change disclosure
• Ethisphere^® Institute's 2020 list of the World's Most Ethical Companies^®
• Corporate Knights 2021 Best 50 Corporate Citizens in Canada

For more information on BMO's commitment to a sustainable future, please visit the bank's Sustainability Report. To learn more about sustainable finance at BMO click here. For BMO's climate ambition, visit our Climate page.

About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $971 billion as of July 31, 2021, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.

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SOURCE BMO Financial Group

FAQ

What is the significance of BMO's recent green bond issuance for Bruce Power?

BMO's issuance of CAD $500 Million in green bonds is significant as it supports Bruce Power's environmental initiatives and represents the world's first nuclear green finance framework.

How much is BMO committed to sustainable lending by 2025?

BMO is committed to deploying CAD $300 billion in sustainable lending and underwriting to support companies pursuing sustainable outcomes by 2025.

What score did CICERO Shades of Green give Bruce Power's green finance framework?

CICERO Shades of Green awarded Bruce Power's Green Finance Framework the highest possible governance score of 'Excellent'.

What role does nuclear power play in BMO's sustainability strategy?

Nuclear power is recognized as crucial in BMO's sustainability strategy, particularly in mitigating climate change and contributing to a net-zero future.