Montréal, August 14, 2023

Hydro-Québec Announces the Results and Settlement of its Separate Offers to Purchase and Exchange to Holders of its Series GL Notes

Hydro-Québec today announces the final results of its separate offers to purchase and offer to exchange addressed to eligible holders of its outstanding Undated Floating Rate Notes (Series GL) (the “Securities”) and offering to each eligible holder to either:

(i) offer all or part of its Securities for purchase by Hydro-Québec for cash (the “Offer to Purchase”); or

(ii) offer some or all of its Securities for exchange on a par for par basis for new U.S. dollar undated floating rate notes (Series JT) (ISIN XS2645732467) (the “Notes”) to be issued by Hydro-Québec and guaranteed by Quebec (the “Exchange Offer” and, together with the Offer to Purchase, the “Offers” and each an “Offer”).

Context of the Offers

The Securities, issued in 1986, carry a floating rate payable on a semi-annual basis and determined on the basis of the U.S. dollar London Interbank Offered Rate (“USD LIBOR”) for maturities of 6 months plus a yield premium. On March 5, 2021, the Financial Conduct Authority of the United Kingdom (“FCA”), the regulator of USD LIBOR, announced that USD LIBOR would cease to be published by the administrators of this benchmark rate after June 30, 2023 and recommended that capital market participants transition to one of the risk-free rates before that final date. Consequently, Hydro-Québec decided to proceed with the Offers and offered eligible holders either to (i) exchange Securities for Notes, which interest rate would be determined by reference to the Secured Overnight Financing Rate (“SOFR”) in connection with the Exchange Offer; or (ii) sell the Securities at the price offered by Hydro-Québec as part of the Offer to Purchase.  At the time of the launch of the Offers on July 17, 2023, the aggregate nominal value of the outstanding Securities was US$200,810,000.

Offers Results

In accordance with the Offers, Hydro-Québec confirms that:

(i) the total face amount of the Securities validly tendered for purchase pursuant to the Offer to Purchase was US$740,000;

(ii) the acceptance amount of the Offer to Purchase was US$740,000;

(iii) the aggregate face amount of the Securities validly offered for exchange under the Exchange Offer was US$128,440,000[1];

(iv) the acceptance amount of the Exchange Offer was US$128,440,000; and

(v) the aggregate face value of the Notes that have been issued is US$128,440,000.

The acceptance amount of the Offer to Purchase and the amount of acceptance of the Exchange Offer are set out in the table below:

Merrill Lynch International acted as Dealer Manager for Hydro-Québec in connection with the Offers.

This press release does not constitute an offer, invitation or solicitation by or on behalf of Hydro-Québec, Québec or Merrill Lynch International to subscribe for, purchase or sell any of the Securities or the Notes.

FOR ADDITIONAL INFORMATION:

Jean-Hugues Lafleur 
Executive Vice President and Chief Financial Officer
Hydro-Québec
(514) 289-4772 

Caroline Des Rosiers
Press Officer
(514) 289-5005
DesRosiers.Caroline@hydroquebec.com

The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered, sold, pledged, taken up, exercised, resold, renounced, transferred or delivered, directly or indirectly, in or into the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. There is no intention to register any securities referred to herein in the United States or to make a public offering of such securities in the United States.