Canada's utilities are expected to keep cranking out bonds in coming months, though the pace of financing is expected to slow after a flurry of debt sales in the spring.
A handful of well-known utilities will sell $1-billion of bonds before the end of 2009, BMO Nesbitt Burns predicted Monday, after the sector set new records by selling $3.2-billion worth of debt through the first seven months of this year.
"Supply from the utility sector is expected to remain elevated in 2010, primarily driven by sizable capex requirements and debt re-financings," said a report from BMO Nesbitt Burns' four-person corporate credit team. They are calling for $3.8-billion of debt issues from Canadian utilities in 2010.
Companies that BMO Nesbitt Burns expects to tap robust corporate bond markets by the end of 2009 include Canadian Utilities Ltd. (through its CU Inc. subsidiary), Brookfield Renewable Power Inc., EPCOR Utilities, Hydro One, and Toronto Hydro.