Mr. Ian McMillan reports
TELUS ANNOUNCES PRICING OF INAUGURAL SUSTAINABILITY-LINKED BOND OFFERING, THE FIRST OF ITS KIND IN CANADA
Telus Corp. has priced an offering of $750-million of senior unsecured sustainability-linked Series CAF notes with a long 10-year maturity. The notes are offered through a syndicate of agents led by RBC Capital Markets as lead structuring agent and joint bookrunner, and Scotiabank as co-structuring agent and joint bookrunner, together with BMO Capital Markets as joint bookrunner. Closing of the offering is expected to occur on or about June 28, 2021.
The 2.85 per cent sustainability-linked Series CAF notes were priced at $99.752 per $100 principal amount for an effective yield of 2.878 per cent per annum until maturity, subject to a possible interest rate step-up, and will mature on Nov. 13, 2031.
The net proceeds of this offering will be used for the repayment of outstanding indebtedness, including the repayment of commercial paper (incurred for general working capital purposes), and for other general corporate purposes.
The notes are sustainability-linked bonds issued pursuant to Telus's sustainability-linked bond framework announced on June 14, 2021, and will be Telus's first bond offering under the framework. As part of the framework, Telus has committed to reducing its absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 46 per cent from 2019 levels by 2030. Should Telus fail to achieve this target by Dec. 31, 2030, the interest payable on the notes will increase by 1.00 per cent per annum, as will be further detailed in the prospectus supplement that Telus will be filing to its short form base shelf prospectus dated May 25, 2021, with securities regulatory authorities in each of the provinces of Canada. The notes are not being offered in the United States or to any resident of the United States.
This bond offering will be the first of its kind in Canada and supports Telus's commitment to environmental sustainability by linking financing to the achievement of ambitious environmental, social and governance (ESG) targets. The target set out in the framework was approved by the science-based target initiative (SBTi), further demonstrating Telus's global sustainability leadership and support of the world's fight against climate change. The sustainability performance target is consistent with reductions required to limit global warming to 1.5 C and, at the time of publication of the framework, is considered the most ambitious designation available through the SBTi process.
Telus will report annually on its performance against the sustainability performance target, and will also obtain an annual independent and external verification of its performance against the sustainability performance target in the form of a limited assurance report. Telus's performance, as well as the limited assurance report, will be included in its annual sustainability report, or other similar report(s) as the case may be, and will be available on Telus's website.
Sustainalytics, a leading independent ESG research, ratings and analytics firm, issued a second party opinion confirming that the framework aligns with the International Capital Market Association's Sustainability-Linked Bond Principles, 2020.
The notes are being offered pursuant to a prospectus supplement to the short form base shelf prospectus of Telus dated May 25, 2021. The short form base shelf prospectus and prospectus supplement contain important detailed information about the notes. Copies of the short form base shelf prospectus and the prospectus supplement relating to the offering of the notes when filed with securities regulatory authorities in Canada may be obtained from the chief legal and governance officer of Telus at 510 West Georgia St., 23rd floor, Vancouver, B.C., V6B 0M3 (telephone 604-695-6420). Copies of these documents are, or will be, available electronically on SEDAR of the Canadian Securities Administrators. Investors should read the short form base shelf prospectus and prospectus supplement before making an investment decision.
About Telus Corp.
Telus is a dynamic, world-leading communications technology company with $16-billion in annual revenue and 16 million customer connections spanning wireless, data, Internet protocol, voice, television, entertainment, video and security. It leverages its global-leading technology and compassion to enable remarkable human outcomes. Its long-standing commitment to putting customers first fuels every aspect of its business, making it a distinct leader in customer service excellence and loyalty. In 2020, Telus was recognized as having the fastest wireless network in the world, reinforcing its commitment to provide Canadians with access to superior technology that connects it to the people, resources and information that make its lives better. Telus Health is Canada's leader in digital health technology, improving access to health and wellness services, and revolutionizing the flow of health information across the continuum of care. Telus Agriculture provides innovative digital solutions throughout the agriculture value chain, supporting better food outcomes from improved agri-business data insights and processes. Telus International is a leading digital customer experience innovator that delivers next-generation artificial intelligence and content management solutions for global brands across the sectors of technology, gaming, e-commerce/fintech, communications/media, health care and travel/hospitality. Telus and Telus International operate in 25-plus countries around the world.
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