Granite REIT completes CAD500m Green Bond offering
Granite Real Estate Investment Trust's (Granite) wholly owned subsidiary Granite REIT Holdings Limited Partnership (Granite LP) has completed its previously announced offering of CAD500 million aggregate principal amount of 3.062 per cent Series 4 senior unsecured debentures due 4 June, 2027 (the “Debentures”).
The Debentures are guaranteed by Granite and Granite REIT Inc. The Debentures are Granite’s inaugural Green Bond issuance.
Through a cross currency interest rate swap, Granite LP 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 per cent for the seven-year term of the Debentures.
The Debentures were offered on an agency basis by a syndicate of agents co-led by BMO Capital Markets and Scotia Capital. DBRS Morningstar and Moody’s Investor Service, Inc. have provided Granite with credit ratings of “BBB” with a stable trend, and “Baa2” with a stable outlook, respectively, relating to the Debentures. The Debentures were sold pursuant to a prospectus supplement dated 2 June, 2020 to Granite LP’s base shelf prospectus dated 12 September, 2019.