Ontario sells Hydro One shares to First Nations

The Province has now completed the sale of 14,391,012 common shares of Hydro One Limited, representing approximately 2.4% of the outstanding common shares, to OFN Power Holdings LP, a limited partnership wholly-owned by Ontario First Nations Sovereign Wealth LP, which is in turn owned by 129 First Nations in Ontario at a purchase price of $18 per share for a total purchase price of $259,038,216.

Energy Minister Glenn Thibeault said this would give economic development opportunities to First Nations across the province.

This transaction demonstrates the goodwill envisioned by the Political Accord to promote stronger economic relations and is one of many steps on Ontario’s journey of healing and reconciliation with Indigenous peoples.

It will provide meaningful opportunities to First Nations for collective wealth creation and to advance economic development initiatives.

The purchase is financed through a 25-year term loan from the Province with a principal amount of $259,038,216. The interest rate for the term loan is at the Province’s relevant borrowing rate, plus 15 basis points. The shares sold in the transaction have been pledged as security for the term loan provided by the Province. The Province has also provided seed capital of approximately $29 million in cash to a new investment fund wholly-owned by Ontario First Nations Sovereign Wealth LP.

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