Creative Energy Developments has closed a C$53 million credit facility that includes a C$28 million debt refinancing and a new C$22 million green loan facility. The facility was led by HSBC Bank Canada and Toronto-Dominion Bank. Creative Energy, a Vancouver-based owner and operator of district energy systems in North America, is backed by Instar Asset Management.
Vancouver, British Columbia (October 13, 2021) — Creative Energy Developments LP (“Creative Energy” or the “Company”), a leading owner and operator of district energy systems in North America, has closed a $53 million credit facility, which includes the refinancing of $28 million of existing debt and a new $22 million green loan facility, led by HSBC Bank Canada and Toronto-Dominion Bank. HSBC acted as the green loan coordinator for the financing.
The facilities are compliant with the Green Loan Principles of the Global Loan Market Association, a set of market standards and guidelines that facilitate and support environmentally sustainable economic activity. The financing will support Creative Energy’s future low-carbon projects in Vancouver and Toronto, including an ocean-exchange district energy system at Horseshoe Bay Sanctuary and a new district cooling system for Main Alley in Vancouver, as well as a neighborhood energy system and microgrid that will provide heating, cooling and power to the 100% rental Mirvish Village project in Toronto, among others.
“District energy, at its core, is about meeting the needs of our rapidly growing communities while responding meaningfully to climate change,” said Krishnan Iyer, Chief Executive Officer of Creative Energy. “Together with our partners, we help cities achieve their essential reliability and sustainability goals, as we work towards a net zero future. That’s who we are, and we are delighted to work with financing institutions that share our values of low-carbon development.”
As the owner and operator of one of the largest district energy networks in North America, Creative Energy aims to bring low-carbon, reliable energy to cities through a range of innovative, environmentally friendly technologies. The company’s downtown Vancouver system established in 1968, currently serves more than 210 buildings, totalling 45 million square feet, across 15 kilometres of distribution pipes. Creative Energy is currently developing 12 new energy systems in Ontario and British Columbia, and actively exploring expansion into the United States.
“HSBC is proud to support Creative Energy in delivering new district energy projects across Canada. These projects will help support municipal commitments in achieving net-zero while ensuring reliable energy is provided to residents and businesses. It ties in closely with HSBC’s global commitment to finance sustainable growth through green financing products.” Angie Hall, Head of Sustainability Finance, Commercial Banking, HSBC Bank Canada.
Globally, HSBC’s green loans support businesses seeking to transition to a more climate-friendly, low-carbon future, by encouraging investments in projects that provide clear environmental benefits and contribute to sustainable growth. These projects may include but are not limited to, renewable energy, pollution prevention, clean transportation, sustainable water and wastewater management, and climate change adaptation. Green loans are part of HSBC’s pledge to provide between US$750 billion and US$1 trillion of finance and investment towards the transition.
About Creative Energy
Based in Vancouver, Creative Energy operates one of the largest district energy systems in North America, maintaining a 99.99% reliability record for over 50 years.
Creative Energy is committed to instigate significant reductions in the GHG emissions of the cities where they operate. With a mission to decarbonize the built environment, they are currently developing several new low-carbon district energy projects across North America. In Vancouver, Creative Energy is undertaking a significant redevelopment of their original downtown Vancouver plant, one of the largest fuel switch projects in North America.