RioCan Real Estate Investment Trust Announces Green Bond Offering Issuance of $450 Million 7-year, Series AE Senior Unsecured Debentures at an Annual Coupon Rate of 2.829%

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TORONTO, Oct. 26, 2021 (GLOBE NEWSWIRE) -- RioCan Real Estate Investment Trust (“RioCan” or the “Trust”) (TSX: REI.UN) today announced that it has agreed to issue $450 million principal amount of Series AE senior unsecured debentures (the “Debentures”). This issuance is RioCan’s third Green Bond offering.

The Debentures are being offered on an agency basis by a syndicate of agents co-led by TD Securities, RBC Capital Markets, BMO Capital Markets, CIBC Capital Markets and Scotia Capital Inc. The Debentures will be sold at par, carry a coupon rate of 2.829% per annum and mature on November 8, 2028. Subject to customary closing conditions, the offering is expected to close on November 8, 2021.

The Series AE Debentures are being issued as Green Bonds under the RioCan Green Bond Framework, which Sustainalytics, a global leader in providing ESG research and analysis, reviewed and confirmed in its independent second party opinion as being aligned with the International Capital Markets Association’s Green Bond Principles 2018. RioCan’s Green Bond Framework and Sustainalytics’ corresponding independent second party opinion are available on RioCan’s website on the Corporate Responsibility page under Reports and Disclosures.

RioCan intends to use an amount equal to the net proceeds of this offering to finance, in whole or in part, expenditures associated with Eligible Green Projects as described in RioCan’s Green Bond Framework. Prior to allocation of the net proceeds of this offering to Eligible Green Projects, the net proceeds may be initially utilized, in part or in full, for repayments of certain of RioCan’s credit facilities, and ultimately will be allocated to Eligible Green Projects in accordance with RioCan’s Green Bond Framework.

It is a condition of closing that DBRS Limited assign a rating of at least BBB (high) with a negative trend and Standard & Poor’s assign a rating of at least BBB for the Debentures with a negative outlook to the entity rating given to RioCan.

The offering is being made on a private placement basis in each of the provinces of Canada, and the Debentures will be issued pursuant to RioCan’s trust indenture dated March 8, 2005, as supplemented. The Debentures will rank equally with all other senior unsecured indebtedness of the Trust.

The Debentures being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. The press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.