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BMO Financial Group, acting as lead co-sustainability structuring agent in a syndicate of eight Canadian and U.S. banks, has announced a financing deal with Boralex, a leading Quebec-based international renewable energy producer. An amendment to an existing credit facility, the deal introduces a margin adjustment incentive mechanism tied to Boralex’s commitment to increase avoidance of carbon emissions and increase women’s representation in management positions. In this financing, a part of Boralex’s borrowing costs will depend on whether it achieves ambitious pre-determined sustainability targets.
“Boralex is a leader in the renewable energy sector promoting a fully integrated vision placing as much importance on achieving our CSR strategy as the financial targets in our strategic plan,” said Bruno Guilmette, Vice President and Chief Financial Officer, Boralex. “By producing renewable energy, we’re already positively contributing to greenhouse gas reduction. In 2020, our portfolio helped to avoid 296,260 tons of CO2 equivalent emissions. Our ambition is also to go ‘beyond renewable energy’ by setting different CSR objectives, including strengthening the representation of women in management and across our workforce. This sustainability-linked loan (SLL) aligns well with our intention to increase Boralex’s participation in the expanding market.”
“Helping clients like Boralex reach their ESG goals is another way BMO is boldly growing the good in business and life. Deals like this are a great example of the way BMO works with clients across industries both to serve their needs and work toward a more sustainable future,” said Jonathan Hackett, Head, Sustainable Finance, BMO Capital Markets. “Sustainable lending continues to grow rapidly worldwide and in Canada, and BMO is proud to be the leading Canadian bank for SLL structuring. Our experience in the energy sector combined with our proven expertise in sustainable finance positioned us as the ideal lead partner in helping Boralex reach its environmental and social goals.”
Sustainability-Linked Revolving Credit Facility
The Sustainability-Linked 5-Year, $525 million Revolving Credit Facility includes terms that reduce or increase the borrowing costs as targets on CO2 emissions avoidance levels and equal opportunities for women – including representation in management positions – are met or missed.
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 – making it number one in Canada in SLLs and ESG bonds 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:
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.
