This is the REIT’s second green bond financing
Allied Properties Real Estate Investment Trust has announced the launch of a $500 million green bond offering.
The sum represents the aggregate principal amount of series I senior unsecured debentures to be offered on an agency basis by a syndicate of agents led by Scotia Capital Inc., BMO Nesbitt Burns Inc. and CIBC World Markets Inc.
These debentures will have a per annum interest rate of 3.095%, and are scheduled to mature on February 06, 2032. The offering is expected to close by August 06, 2021.
“This second green bond financing is an important step in solidifying our bond market franchise,” said Michael Emory, president and CEO of Allied Properties REIT. “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%; (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.”
The REIT said that the net proceeds of the offering, following the previously described expenses, are expected to fund the financing and/or refinancing of green projects that fulfil the criteria set in the Allied Green Financing Framework.