Questions about Hydro-Québec’s financing

Here are answers to the most frequently asked questions about Hydro-Québec’s financing. For any other questions regarding Hydro-Québec’s financing, view our FAQ or contact the Investor relations team.

I am a private investor who wants to purchase a Hydro-Québec bond or obtain repayment for a Hydro-Québec bond.

How to buy Hydro-Québec debentures?

It is possible to buy debentures through the services of a securities brokerage firm. These firms are generally affiliated to major Canadian banks and credit and savings cooperatives. They may hold Hydro-Québec debentures in inventory and offer them to their clients.

I own Hydro-Québec debentures that have matured more than three years ago. How to redeem them?

Contact a member of the Investor Relations team: rel.inv@hydro.qc.ca.

I own Hydro-Québec bearer bonds that have matured—or that have been lost—or registered bonds that have matured. What should I do?

Communiquer avec un membre de l’équipe Relations avec les investisseurs : rel.inv@hydro.qc.ca.

I have in my possession shares of a nationalized electricity cooperative. What should I do?

Shareholders of nationalized electricity cooperatives had until December 31, 1986 to obtain a refund. The outstanding shares have no more market value.

For more information, contact the Natural resources department:

5700, 4e Avenue Ouest, bureau A‑415

Québec (Québec) G1H 6R1

Telephone : 418 627‑6386, ext. 8305

May I buy Hydro-Québec shares?

No. Hydro-Québec is a government-owned corporation whose sole shareholder is the Québec government. Hydro-Québec meets its financing needs through the bond market.

Guarantee of the Québec government

Does the Québec government guarantee apply to all of Hydro-Québec’s debt?

As at December 31, 2019, long-term debt totaled $45.8 billion*. Of that amount, $44.1 billion are debentures and medium-term notes that are guaranteed unconditionally by the Québec government. After taking into account short-term borrowings and sinking funds, the guaranteed amount is $43.4 billion. Commercial paper and standby lines of credit are also guaranteed by the Québec government.

Debts other than bonds and medium-term notes totaling a discounted amount of $1,556 million are not guaranteed by the Québec government.

The Hydro‑Québec debt guaranteed by the Québec government excludes its subsidiaries and joint ventures.

*Including current portion and perpetual debt.

Does the guarantee of the Québec government apply to Hydro-Québec’s subsidiaries and joint ventures?

No. The Hydro‑Québec debt guaranteed by the Québec government excludes its subsidiaries and joint ventures.

Financing

What are Hydro-Québec’s financing objectives and strategies?

Maintain the presence and impact of Hydro–Québec on capital markets.

  • Plan bond issuance—in particular, series maturing in 2050, 2055 and 2060—in order to increase market liquidity. These long-term bonds are in line with the service life of our property, plant and equipment.
    Debt maturities 2021-2060 as at December 31, 2020

  • Stagger debt maturities to maintain the annual financing program at a stable level.
  • Focus on strategically important capital markets, in particular the Canadian and U.S. dollar markets.

Diversify Hydro–Québec’s funding sources while minimizing foreign exchange risk

  • Maintain access to foreign capital markets, particularly the U.S. dollar market.
  • If needed, use swaps to hedge financing in foreign currencies.
  • Secure financing in the lowest-cost market.

Manage Hydro-Québec’s debt effectively.

  • Redeem debt prior to maturity.

Does Hydro-Québec proceed to the reopening of some debenture series?

Yes. Debentures maturing in 2050 are a good example.

Where can I view Hydro-Québec’s outstanding long-term debt?

Dividend

What is the maximum dividend that Hydro-Québec may have to pay to the Québec government?

Under the Hydro-Québec Act, the dividends to be paid by Hydro-Québec are declared once a year by the Québec government, which also determines the terms and conditions of payment. For a given financial year, the dividend cannot exceed the distributable surplus, equal to 75% of net profit. This calculation is based on the consolidated financial statements. However, no dividend may be declared in respect of a financial period if the payment thereof would result in a reduction of the rate of capitalization of the Company to less than 25% at the end of that period.

How can we help you?

For questions regarding Hydro-Québec’s financing, contact the Investor relations team.

Contact us

Terms and conditions of disclosure

The content of this site is intended for general information purposes only and should not be construed as an offer to sell or a solicitation of offers to purchase securities.

It has not been approved by any regulatory body and is not sufficient for the purpose of deciding to purchase securities. The information, when released, was considered reliable as of that date.

However, errors or omissions may have resulted from electronic conversion, downloading or unauthorized modifications. No warranty is being made by Hydro‑Québec as to the accuracy or completeness of the information provided on this site. Users from outside the Province of Québec are sole responsible for complying with their national, provincial or state laws and regulations.

1999-2015 HYDRO-QUÉBEC ALL RIGHTS RESERVED©