Northland Power Inc. announced that it has priced a private placement offering (the Offering) in Canada of $500 million Fixed-to-Fixed Rate Green Subordinated Notes, Series 2023-A, due June 30, 2083 (the Notes). The Notes will carry a fixed coupon of 9.25% per annum until the first reset date on June 30, 2028. The Offering is expected to close on June 21, 2023.

The Notes are expected to have an after-tax cash cost in Euros to the Company of approximately 6.20% after the benefit of a Canadian dollar to Euro hedge and applicable corporate tax deductions. The Offering represents Northland's first green corporate hybrid bond issuance pursuant to its Green Financing Framework, which was updated in May 2023 and for which Sustainalytics provided a second-party opinion. The Green Financing Framework and second-party opinion from Sustainalytics can be found on the Company's website.

HSBC acted as Sole Green Structuring Agent to Northland on its Green Financing Framework. The Company intends to allocate the net proceeds from the Offering toward financing investments in “green” projects that meet the eligibility criteria of Northland's Green Financing Framework, notably the Baltic Power offshore wind farm in Poland and the Oneida energy storage project in Ontario. The Offering is being made in Canada through a syndicate of underwriters co-led by CIBC Capital Markets and HSBC.