Allied Properties REIT Launches $500M Green Bond Series

Allied Properties REIT has launched a $500 million series of green bonds. They are being offered by Scotia Capital, BMO Nesbitt Burns and CIBC World Markets. The debentures are Allied’s second green bond issuance under its previously announced Green Financing Framework.

“This second green bond financing is an important step in solidifying our bond market franchise,” president and CEO Michael Emory said. “It will enable us to do the following: fix our interest cost on $494 million of debt for a term of 10.5 years; increase the weighted average term to maturity of our debt from 5.9 years to 7.3 years; increase the unencumbered portion of our portfolio to 96 per cent; improve our interest coverage ratio from 3.3 to 3.5 times; and maintain our net debt as a multiple of annualized adjusted EBITDA.”

Allied intends to allocate the net proceeds to fund the financing and/or refinancing of eligible green projects as described in the Allied Green Financing 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 to prepay approximately $494 million aggregate principal amount of first mortgages and for general trust purposes.

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