Mr. David Bronicheski reports

ALGONQUIN POWER & UTILITIES CORP. ANNOUNCES PRIVATE OFFERING OF $300 MILLION SENIOR UNSECURED DEBENTURES FOR ALGONQUIN POWER CO.

Algonquin Power Co. (APCo), Algonquin Power & Utilities Corp.'s wholly owned, renewable power generation subsidiary, has offered for sale $300-million in 4.09-per-cent senior unsecured debentures with a maturity date of Feb. 17, 2027, pursuant to a private placement in Canada and the United States. The APCo debentures were offered at a price of $99.929 per $100 principal amount, resulting in an effective yield to maturity of 4.099 per cent per annum.

Net proceeds from the APCo debentures will be used to repay existing indebtedness and for APCo's general corporate purposes. Concurrent with the offering, APCo is entering into a cross-currency swap, coterminous with the APCo debentures, to convert the Canadian-dollar-denominated proceeds from the offering into U.S. dollars, resulting in an effective interest rate throughout the term of the APCo debentures of approximately 4.85 per cent.

"APCo has experienced significant growth since our last bond offering in 2014, having added over 430 mw of renewable wind- and solar-powered generating stations in both Canada and the U.S.," commented David Bronicheski, chief financial officer of Algonquin Power & Utilities. "This most recent bond offering demonstrates the value of APCo's bond platform to provide efficient access to the debt-capital markets while at the same time delivering our bondholders the benefits of a larger, more diversified portfolio of long-term contracted renewable power assets."

APCo has been provided long-term issuer credit ratings of BBB (low), under review, developing implications, by DBRS Ltd. and BBB, with a negative outlook, by Standard & Poor's Rating Service. Algonquin Power & Utilities expects the APCo debentures will receive final ratings of BBB (low), under review, developing implications, by DBRS and BBB by S&P.

The APCo debenture offering is being co-led by National Bank Financial Inc. and CIBC World Markets Inc. and is expected to close on or about Jan. 17, 2017.

About Algonquin Power & Utilities

Algonquin Power & Utilities is a North American diversified generation, transmission and distribution utility with $10-billion in total assets. The distribution business group provides rate-regulated water, electricity and natural gas utility services to over 782,000 customers in the United States. The generation business group owns a portfolio of regulated and long-term contracted North American-based wind-, solar-, hydroelectric- and thermal-powered generating facilities, representing more than 2,500 mw of installed capacity. The transmission business group invests in rate-regulated electric transmission and natural gas pipeline systems in the United States and Canada.

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