Oncor Issues C$500M Senior Secured Notes

The proceeds will support general corporate purposes and refinance commercial paper, as Oncor boosts long-term capital structure.

September 30, 2025

Oncor Strengthens Balance Sheet with 10-Year, Canadian-Dollar Denominated Debt Offering

Oncor has issued C$500 million in senior secured notes maturing in 2035. The notes carry a 4.20% fixed rate and are denominated in Canadian dollars—but Oncor converted the obligations to fixed-rate U.S. dollars at issuance. By locking in a 5.022% all-in U.S. dollar rate through cross-currency swaps, the company removed exchange rate uncertainty from future interest and principal payments.

This financing gives Oncor a direct source of long-term capital, while also helping reduce short-term borrowing. The company expects to use roughly C$493.6 million in net proceeds (about US$356.7 million at a spot rate of C$1.3837 to US$1.00) for general corporate purposes. That includes repaying commercial paper issued under its existing short-term program.

The notes were issued under Oncor’s long-standing indenture agreement and are backed by a lien on all electric transmission and distribution property the company acquires or builds. This security structure remains consistent with Oncor’s other outstanding debt under the same indenture.

Redemption and Payment Terms Provide Flexibility

The offering gives Oncor flexibility on repayment. Before July 1, 2035, it can redeem the notes at a premium. After that date, the redemption price drops to par. If tax law changes force Oncor to pay additional amounts, it can redeem the notes in full at face value plus accrued interest.

Interest terms:

• Interest begins accruing immediately.


• Payments will be made semi-annually, starting April 1, 2026.

The notes were sold to institutional and non-U.S. investors under Rule 144A and Regulation S—providing access to capital without registering the offering publicly.

With this move, Oncor reinforces its long-term capital strategy, locking in fixed-rate funding while managing currency exposure. The structure allows the company to stay focused on infrastructure investments without adding foreign exchange risk to the balance sheet.