By Wendy Van Sickle
Columbus, Ohio, June 2 – Granite Real Estate Investment Trust announced on Tuesday that subsidiary Granite REIT Holdings LP priced a C$500 million private placement of 3.062% series 4 seven-year senior green debentures.
The securities are the first to be issued under the company’s green bond framework announced on May 28.
BMO Capital Markets and Scotia Capital Inc. co-led the offering.
It is a condition of closing that DBRS Morningstar and Moody’s Investors Service assign credit ratings of “BBB” with a stable trend or higher and “Baa2” with a stable outlook or higher, respectively.
Through a cross currency interest rate swap, Granite has exchanged the Canadian dollar-denominated principal and interest payments for U.S. dollar-denominated payments, resulting in an effective fixed interest rate of 2.964%.
The debentures will be guaranteed by the parent company and Granite REIT Inc.
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
|
| 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: | June 4, 2027
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| Co-lead managers: | BMO Capital Markets and Scotia Capital Inc.
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| Coupon: | 3.062%
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| Trade date: | June 2
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| Settlement date: | June 4
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| Distribution: | Canada private placement
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