Allied Properties REIT - President and CEO, Michael Emory.
President and CEO, Michael Emory.
Source: Allied Properties REIT.
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  • Allied Properties REIT (AP.UN) has launched a C$500 million green bond offering
  • The debentures will bear interest at a rate of 3.095 per cent per annum and will mature on February 6, 2032
  • The company intends to allocate the proceeds to finance and/or refinance eligible green projects as described in its Green Financing Framework
  • Prior to these green allocations, Allied will use the proceeds to prepay $494 million of first mortgages
  • Allied is an owner, manager and developer of urban workspaces and data centres in Canada
  • Allied Properties REIT (AP.UN) is down by 1.25 per cent and is currently trading at $45.14 per share

Allied Properties REIT (AP.UN) has launched a C$500 million green bond offering.

The debentures will bear interest at a rate of 3.095 per cent per annum and will mature on February 6, 2032.

The company intends to allocate the proceeds to finance and/or refinance eligible green projects as described in its Green Financing Framework.

Prior to these green allocations, Allied will use the proceeds to prepay $494 million of first mortgages. 

DBRS Limited provided the debentures with a provisional credit rating of BBB, while Moody’s provided them with a provisional rating of Baa2.

The series I senior unsecured debentures are being offered on an agency basis by a syndicate led by Scotia Capital, BMO Nesbitt Burns and CIBC World Markets. 

The company is making the offering pursuant to its base shelf prospectus dated June 2, 2021. 

The offering is expected to close on or about August 6, 2021.

Michael Emory, Allied’s President & CEO, commented,

“This second green bond financing is an important step in solidifying our bond market franchise. It will enable us to do the following: (i) fix our interest cost on $494 million of debt for a term of 10.5 years; (ii) increase the weighted average term to maturity of our debt from 5.9 years to 7.3 years; (iii) increase the unencumbered portion of our portfolio to 96 per cent; (iv) improve our interest coverage ratio from 3.3 to 3.5 times; and (v) maintain our net debt as a multiple of annualized adjusted EBITDA.”

Allied is an owner, manager and developer of urban workspaces and data centres in Canada.

Allied Properties REIT (AP.UN) is down by 1.25 per cent and is currently trading at $45.14 per share as of 2:29 pm ET.

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