Hydro One Subsidiary Unveils C$1.6 Billion Medium Term Notes Offering

2025-12-26 04:14:17

Abstract generation in progress

Hydro One Inc., the wholly-owned subsidiary of Hydro One Limited (H.TO), has set the pricing for its substantial debt issuance program comprising C$1.6 billion in Medium Term Notes. This two-tranche offering demonstrates the utility company’s strategic approach to capital markets funding.

Financing Structure & Principal Quotes

The offering is divided into two distinct series with varying maturities and coupon rates. The primary tranche consists of C$1.2 billion of 3.90% Medium Term Notes, Series 64, maturing in 2033, priced at C$99.939 per C$100 principal amount. The second component includes C$400 million of 4.80% Medium Term Notes, Series 65, with a 2056 maturity date, offered at C$99.888 per C$100 principal amount.

Funds Allocation & Green Framework

The net proceeds from this debt issuance are anticipated to reach approximately C$1.59 billion. According to the company’s Sustainable Financing Framework established on August 13, 2024, these funds will be directed toward financing and refinancing new and existing eligible green projects that meet specified environmental criteria. Prior to full allocation toward green initiatives, proceeds may temporarily support debt repayment or cash equivalent investments, subject to Hydro One’s internal liquidity policies.

Timeline & Market Expectations

The debt offering is slated to close on November 21, 2025. This medium-term financing move underscores Hydro One’s commitment to sustainable infrastructure development while managing its capital structure efficiently. The principal quotes reflect prevailing market conditions and the company’s strong credit standing in the debt markets.

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