A new $185 billion plan by Hydro-Quebec to build out increased power capacity is gaining attention from institutional investors, according to a report by Bloomberg.
Michael Sabia, chief executive officer at Hydro-Quebec, said he’s confident in finding the right partners to help tackle the new project, which was announced last November and is designed to improve transmission reliability and reduce greenhouse gas emissions. It would boost the capacity of the firm by about 25 per cent and this increase in production is needed for Hydro-Quebec to meet its power export agreements in the U.S. market, the report noted.
Read: Proprietary technology cut mall HVAC electricity usage by 35%, finds Caisse
Hydro-Quebec is in the early days of engaging potential partners and Sabia didn’t disclose any further details. He did, however, boast about how the firm’s bonds are “very green and very liquid.”
According to its most recent financial report, Hydro-Quebec produced $3.3 billion in annual profit, a 28 per cent decline from its 2022 result. It reported $50 billion in long-term outstanding debt. Sabia, who took over Hydro-Quebec just last year, previously said its services weren’t up to what’s expected of them and required a rebuild.
At the end of March, Hydro-Quebec issued $500 million worth of debentures due Feb. 15, 2063 with a yield of 4.3 per cent. The debentures were confirmed to carry a four per cent coupon, payable semi-annually.
“The ambition of the action plan has managed to attract a considerable amount of attention in the financial markets,” said Sabia. “We’ve also had a lot of very positive incoming from suppliers, from producers, people who are interested in building partnerships with us going forward.”