The bond offering totalled half a billion dollars
Allied Properties REIT has announced the closure of its previously announced offering of $500 million aggregate principal amount of series I senior unsecured debentures.
Bearing an interest rate of 3.095% per annum and maturing on February 06, 2032, the debentures were offered on an agency basis by a syndicate of agents led by Scotia Capital Inc., BMO Nesbitt Burns Inc., and CIBC World Markets Inc.
Additionally, DBRS Limited and Moody’s Investors Service, Inc. provided Allied with credit ratings of “BBB” with a “Stable” trend and “Baa2”, respectively, related to the transaction.
This marked Allied’s second green bond issuance, adhering to its previously released guidelines as detailed in its Green Financing Framework, which can be read at the REIT’s online portal.
Read more: Major REIT announces $500 million bond offering
“Allied intends to allocate the net proceeds of the offering to fund the financing and/or refinancing of eligible green projects as described in the framework,” the REIT said. “Prior to allocation of the net proceeds of the offering to eligible green projects, Allied intends to use the net proceeds of the offering (a) to prepay approximately $494 million aggregate principal amount of first mortgages and (b) for general trust purposes.”
The net proceeds will then go to eligible green projects, per the parameters set by the framework.
“Although Allied intends to allocate an amount equal to the net proceeds of the offering as described herein, it will not be an Event of Default under the Series I Indenture if Allied fails to do so,” the REIT added.
