REIT's second green bond offering amounts to $500 million in senior unsecured debentures
Granite Real Estate Investment Trust, through its wholly owned subsidiary Granite REIT Holdings Limited Partnership, has completed an offering of $500 million in green bonds.
Granite’s second issuance pursuant to its green bond framework, the bonds consist of 2.194% series 6 senior unsecured debentures due on August 30, 2028.
The debentures were offered by a syndicate of agents co-led by Scotia Capital and RBC Capital Markets. Granite has received credit ratings of BBB and Baa2 from DBRS Morningstar and Moody’s Investor Service, respectively, with respect to the debentures.
Following the framework, Granite LP aims to use an amount equal to the net proceeds of the offering to wholly or partly finance or refinance expenditures associated with eligible green projects.
Granite LP has exchanged the Canadian dollar-denominated principal and interest payments for U.S. dollar-denominated principal and interest payments through a cross-currency interest rate swap. That has resulted in an effective fixed interest rate of 2.096% for the seven-year term of the debentures.
A Canadian-based REIT, Granite is focused on the acquisition, development, ownership, and management of logistics, warehouse, and industrial properties in North America and Europe. Its portfolio of 119 investment properties represents approximately 51.3 million square feet of leasable area.