By Wendy Van Sickle
Columbus, Ohio, Aug. 25 – Granite Real Estate Investment Trust announced on Wednesday that subsidiary Granite REIT Holdings LP priced C$500 million of 2.194% series 6 seven-year senior green debentures.
Through a cross currency interest rate swap, Granite LP has exchanged the Canadian dollar-denominated principal and interest payments for euro-denominated payments, resulting in an effective fixed interest rate of 1.045% for the seven-year term of the debentures.
RBC Capital Markets and Scotia Capital Inc. co-led the offering.
The debentures will be guaranteed by the parent company and Granite REIT Inc.
A closing condition is that DBRS Morningstar and Moody’s Investor Service, Inc. assign the debentures credit ratings of “BBB (high)” with a stable trend or higher, and “Baa2” or higher, respectively.
Proceeds will be used to finance or refinance, in whole or in part, expenditures associated with eligible green projects.
Granite REIT is a Toronto-based real estate investment trust that owns and manages mostly industrial, warehouse and logistics properties in North America and Europe.
| Issuer: | Granite REIT Holdings LP
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| Guarantors: | Granite Real Estate Investment Trust and Granite REIT Inc.
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| Amount: | C$500 million
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| Description: | Senior green debentures
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| Maturity: | Aug. 30, 2028
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| Co-lead managers: | RBC Capital Markets and Scotia Capital Inc.
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| Coupon: | 2.194%
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| Announcement date: | Aug. 25
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| Settlement date: | Aug. 30
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