Norsk Hydro's Sustainable Financing: $1.1 Billion Initiative for Green Energy Projects

### Hydro One's Green Financing Initiative: A Step Towards Sustainable Energy

Hydro One Limited, Ontario's largest electricity transmission and distribution company, has recently made a significant move in the realm of sustainable financing. On August 20, 2025, its subsidiary, Hydro One Inc., successfully prices an offering of $1.1 billion in Medium Term Notes (the "Notes"). This offering is structured into three distinct series, namely Series 61, Series 62, and Series 63, which are set to mature in 2032, 2035, and 2055, respectively. The issuance is not just a financial maneuver; it represents Hydro One's commitment to bolster its investments in environmentally-friendly projects. The proceeds from this offering are earmarked for financing or refinancing eligible green projects, aligning with the company's Sustainable Financing Framework established just the previous year.

The structured offering features competitive interest rates of 3.94%, 4.30%, and 4.95% for the respective series of Notes, demonstrating a calculated approach to capital raising. The pricing of the Series 61 Notes at $99.988 per $100.00 principal amount, alongside the other series, reflects Hydro One's strategic intent to attract a broad spectrum of investors. The anticipated closing date for this offering is August 25, 2025, and it is expected to be executed on a best-efforts basis across Canada, engaging a syndicate of reputable agents such as BMO Nesbitt Burns Inc. and TD Securities Inc. This initiative not only reinforces Hydro One's financial stability but also positions the company as a leader in the transition towards sustainable energy solutions.

Hydro One's commitment to sustainability is further underscored by its Sustainable Financing Framework, which emphasizes responsible investment in green projects. Although the trust indenture governing the Notes does not stipulate a penalty for failing to allocate all proceeds to these initiatives, the company demonstrates its dedication to environmental stewardship through this proactive approach. By integrating sustainable practices into its financing strategies, Hydro One is not only enhancing its corporate responsibility but also contributing to the broader goals of reducing carbon emissions and promoting renewable energy solutions in Ontario.

In addition to its financing efforts, Hydro One continues to explore innovative solutions to enhance its operational efficiency and customer service. By investing in modern technologies and infrastructure, the company aims to improve the reliability and resilience of its electricity transmission and distribution systems. This focus on innovation is crucial as the energy sector evolves in response to climate change and evolving regulatory frameworks.

Overall, Hydro One's recent Medium Term Notes offering signifies a pivotal step in its journey towards sustainability, marking a commitment to funding green projects that can facilitate a more environmentally responsible energy future for Ontario.