Brookfield Renewable Announces Renewal of Normal Course Issuer Bids

Brookfield Renewable has revealed significant news regarding its commitment to purchasing its own shares. On December 13, 2024, the Toronto Stock Exchange confirmed that Brookfield Renewable Partners L.P. (BEP), along with related entities, will renew their normal course issuer bids. This move is aimed at allowing Brookfield to buy back its limited partnership units and preferred shares at prices that better reflect their market value.

Details of the Issuer Bids

The renewal includes three main components: First, Brookfield Renewable Partners L.P. plans to repurchase its limited partnership units, marked as "LP Units." Second, Brookfield Renewable Corporation will renew its bid for exchangeable subordinate voting shares, referred to as "Exchangeable Shares." Lastly, Brookfield Renewable Power Preferred Equity Inc. intends to repurchase its preferred shares.

Number of Shares Authorized for Purchase

Specifically, under BEP's normal course issuer bid, the company is authorized to buy back up to 14,255,578 LP Units, amounting to 5% of its total issued units. As of December 5, 2024, there were 285,111,569 LP Units outstanding. Under this plan, BEP can repurchase up to 74,937 LP Units on any trading day, which is capped at 25% of the average daily trading volume over the last six months.

In a similar vein, Brookfield Renewable Corporation is cleared to repurchase up to 8,982,042 Exchangeable Shares, also representing 5% of the shares issued. The terms specify that a maximum of 70,747 Exchangeable Shares may be repurchased daily.

Preferred Units and Shares Purchase Plans

Brookfield Renewable Partners also plans to buy back about 10% of the public float for several preferred unit series. This includes three series of Preferred Units and five series of Preferred Shares. The exact shares and their daily purchase limits are defined under applicable trading rules.

Timeline for Repurchases

The new bids are set to start on December 18, 2024, and will end on December 17, 2025, unless Brookfield completes its planned repurchases earlier. This is part of their previous bids, where they had sought and received approval for similar buybacks earlier in December 2023.

Market Impact and Goals

Brookfield Renewable believes that the renewal of these issuer bids offers a strategic way to leverage available funds. By repurchasing shares deemed undervalued, the company aims to enhance shareholder value. The flexibility to act when market conditions are favorable is a key aspect of their strategy.

About Brookfield Renewable

Brookfield Renewable is a leading operator in the renewable energy sector, boasting a diverse portfolio that includes hydroelectric, wind, utility-scale solar, and other renewable facilities across various regions. With over 35,000 megawatts of operating capacity, the firm is well-positioned to address the growing global demand for clean energy solutions.

Investors have the option to participate in Brookfield's offerings through either Brookfield Renewable Partners L.P. or Brookfield Renewable Corporation, each providing a pathway to invest in renewable energy initiatives.

Brookfield, Renewable, Bids