Polaris Renewable Energy Concludes $175 Million Bond Issue

Toronto-based Polaris Renewable Energy Inc. has successfully finalized the issuance of a $175 million private placement of senior secured green bonds. These bonds come with a five-year maturity and a fixed annual coupon rate of 9.5%, with interest disbursed bi-annually. A notable feature of this issuance is the included tap option, enabling access to an additional $50 million if required.

The bonds are rated BB- by S&P Global Ratings and align with Polaris's green finance framework, having received a second-party opinion from Morningstar Sustainalytics. Proceeds are earmarked for refinancing existing debt, acquiring the Punta Lima wind farm in Puerto Rico, and further investments in renewable energy initiatives.

Pareto Securities served as the lead manager, with National Bank Financial Inc. as the Capital Markets Advisor. The issuance is not qualified for distribution in Canada, limiting its market reach.