Allied Announces Pricing of $600 Million Green Bond Offering

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TORONTO, Feb. 05, 2021 (GLOBE NEWSWIRE) -- Allied Properties Real Estate Investment Trust (TSX:AP.UN) (“Allied”) announced today that it has priced its previously announced offering, and has agreed to issue $600 million aggregate principal amount of series H senior unsecured debentures (the “Debentures”). The Debentures will bear interest at a rate of 1.726% per annum and will mature on February 12, 2026. The Debentures are being offered on an agency basis by a syndicate of agents led by Scotia Capital Inc., BMO Nesbitt Burns Inc. and CIBC World Markets Inc. The offering is expected to close on or about February 12, 2021. DBRS Limited has provided Allied with a provisional credit rating of “BBB” with a “Stable” trend relating to the Debentures. Moody’s Investors Service, Inc. has provided Allied with a provisional credit rating of “Baa2” relating to the Debentures.

The Debentures are Allied’s inaugural Green Bond issuance under its previously announced Green Financing Framework, which is available on Allied’s website at https://www.alliedreit.com/company/esg/.

Allied makes this offering pursuant to its base shelf prospectus dated November 19, 2019. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators.

Allied intends to allocate the net proceeds of the offering to fund the financing and/or refinancing of eligible green projects (“Eligible Green Projects”) as described in the Allied Green Financing Framework (the “Framework”). Prior to allocation of the net proceeds of the offering to Eligible Green Projects, Allied intends to use the net proceeds of the offering (a) to redeem in full the $150 million aggregate principal amount of 3.934% series B senior unsecured debentures due November 14, 2022 (the “Series B Debentures”), (b) to repay a first mortgage in the amount of $150 million secured by 700 de la Gauchetière West, Montréal, (c) to repay certain amounts drawn on Allied’s unsecured credit facility, and (d) for general trust purposes. The net proceeds will ultimately be allocated to Eligible Green Projects in accordance with the Framework.