TELUS completes its first U.S. sustainability bond
VANCOUVER, British Columbia, Feb. 28 2022 (GLOBE NEWSWIRE) — TELUS today announced that it has successfully closed its previously announced offering of US$900 million of 3.400% senior unsecured sustainability-linked notes with a long tenor of 10 years. The Notes were offered through a syndicate of underwriters led by JP Morgan Securities LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC.
“Today, with the successful closing of our first US sustainability bond, our team is at the forefront of sustainability practices, setting an example of leadership in optimizing the behavior-based financing to advance our Sustainable Development Goals,” said Darren Entwistle, President. and CEO. “Importantly, our science-based goal of reducing greenhouse gas emissions further validates our commitment to reducing our carbon footprint and caring for the planet our children will inherit. The successful completion of our US Sustainability-Linked Bond reinforces our longstanding global leadership in social capitalism and our team’s dedication to exploring new and innovative ways to improve the lives of citizens around the world, today and for generations to come.
The net proceeds of this offering will be used for the repayment of outstanding debt, including the repayment of commercial paper (committed for general working capital purposes) and for other general corporate purposes.
The Notes are “Sustainability Bonds” issued pursuant to TELUS’ Sustainability Bond Framework announced on June 14, 2021, as may be amended, updated and/or replaced from time to time (the “Framework”) and will be TELUS’ second bond issuance under the Framework. As part of this framework, TELUS is committed to reducing its absolute Scope 1 and 2 greenhouse gas (“GHG”) emissions by 46% below 2019 levels by 2030. If TELUS n does not achieve this objective (the “Sustainability Performance Objective”) by has filed its short form base shelf prospectus dated May 25, 2021 with the Securities and Exchange Commission as part of an effective registration statement on Form F-10. Interest payable on the Notes may also increase in certain circumstances if TELUS fails to achieve additional sustainability and/or environmental, social or governance (“ESG”) objectives, as provided for in a future “Sustainability Bond”. (a “future sustainability bond”) issued by the Company in accordance with the Framework. However, the interest rate on the bonds may in no case exceed the initial rate of 3.40% by more than 1.50% per annum in total, whether due to the non-achievement of the objective sustainability performance and/or any targets under one or more Future SLBs. The Notes have not been offered in Canada or to a resident of Canada, except in transactions exempt from the prospectus requirements of applicable Canadian securities laws.
This bond issue supports TELUS’ commitment to environmental sustainability by tying funding to the achievement of ambitious ESG goals. The goal set out in the framework has been endorsed by the Science Based Targets initiative (“SBTi”), further demonstrating TELUS’ global leadership in sustainability and its support for the global fight against climate change. The sustainability performance target is consistent with the reductions required to limit warming to less than 1.5°C and, at the time of the framework’s publication, is considered the most ambitious designation available under the SBTi process.
TELUS will report annually on its performance against the sustainability performance goal and will also obtain an independent, external annual verification of its performance against the sustainability performance goal in the form of a a limited assurance report. TELUS’ performance and limited assurance report will be included in its annual sustainability report or other similar reports, as applicable, and will be available on TELUS’ website.
Sustainalytics, a leading independent ESG research, rating and analysis company, published a second-party opinion in June 2021 confirming that the framework aligns with the International Sustainability Bond Principles Capital Market Association, 2020.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. The securities offered have not been approved or disapproved by any securities regulatory authority in Canada or the United States, and no authority has passed upon the accuracy or adequacy of the short form base shelf prospectus or prospectus supplement. .
Copies of the short form base shelf prospectus and prospectus supplement relating to the offering of the Notes filed with the United States Securities and Exchange Commission may be obtained from TELUS’ Chief Legal and Governance Officer at 510 W. Georgia St., 23rd Floor, Vancouver, British Columbia V6B 0M3 (telephone 604-695-6420). Copies of these documents are available electronically on the Electronic Data Collection, Analysis, and Retrieval System administered by the United States Securities and Exchange Commission (“EDGAR”) at www.sec. gov. Investors should read the short form base shelf prospectus and prospectus supplement before making an investment decision.
This news release contains statements about future events relating to the offering, including the expected use of the net proceeds of the offering, the framework, including TELUS’ commitment to reduce its absolute GHG emissions of scope 1 and 2 by 46% from 2019 levels by 2030, increasing the annual interest rate on the Notes if TELUS does not meet the sustainability performance target by the required date, l increase in the annual interest rate of the notes if TELUS does not meet additional ESG objectives set out in a future SLB, TELUS’ commitments to report annually on its performance against its sustainability performance objective , to obtain an independent and external annual verification of its performance against the sustainability performance objective in the form of a limited assurance report and to include such performance and assurance report limited in the TELUS annual sustainability report or other similar reports and make them available on the TELUS website. By their nature, forward-looking statements require us to make assumptions and forecasts and are subject to inherent risks and uncertainties, including: risks associated with capital and debt markets; TELUS’ ability to identify and implement solutions to reduce energy consumption and switch to cleaner energy sources; TELUS’ ability to identify and make appropriate investments in renewable energy, including in the form of power purchase agreements; TELUS’ ability to continue to achieve significant absolute reductions in energy consumption and resulting GHG emissions in its operations (including through programs and initiatives focused on our buildings and our network); and other risks associated with achieving TELUS’ goals of reducing its GHG emissions targets by 2030. There is a significant risk that forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements, as a number of factors could cause actual future performance and events to differ materially from those described in the forward-looking statements. Accordingly, this press release is subject to the disclaimer and caveats and risk factors set forth in our 2021 Annual MD&A, as well as other TELUS public disclosure documents and filings with the securities commissions in Canada (on SEDAR at sedar.com) and in the United States (on EDGAR at sec.gov). The forward-looking statements contained in this press release describe our expectations as of the date of this press release and, accordingly, are subject to change after such date. Except as required by law, TELUS disclaims any intention or obligation to update or revise any forward-looking statements.
TELUS (TSX: T, NYSE: TU) is a dynamic, leading communications technology company with $17 billion in annual revenue and 17 million customer connections spanning wireless, data, IP , voice, television, entertainment, video and security. Our social purpose is to leverage our advanced technology and compassion to drive social change and enable remarkable human results. Our long-standing commitment to putting our customers first fuels every aspect of our business, making us a distinct leader in customer service excellence and loyalty. The many sustained accolades TELUS has received over the years from industry-leading independent network analytics firms are a testament to the strength and speed of TELUS’ world-class networks, reinforcing our commitment to provide Canadians with access to superior technology that connects us to people. , resources and information that improve our lives.
TELUS Health is Canada’s leader in digital health technology, improving access to health and wellness services and revolutionizing the flow of health information across the continuum of care. TELUS Agriculture provides innovative digital solutions across the agriculture value chain, driving better food outcomes through improved agribusiness data insights and processes. TELUS International (TSX and NYSE: TIXT) is a leading digital customer experience innovator that designs, builds and delivers next-generation solutions, including AI and content management, for global brands and disruptive in high-growth verticals, including technology and gaming. , communications and media, e-commerce and FinTech, healthcare, travel and hospitality. TELUS and TELUS International operate in more than 25 countries around the world.
Driven by our determination and vision to connect all citizens for good, our deeply meaningful and enduring philosophy of giving where we live has inspired TELUS, our team members and retirees to contribute more than $900 million and 1 .8 million days of service since 2000. This generosity and unparalleled volunteerism have made TELUS the most generous company in the world. Together, let’s make the future friendly.
For more information about TELUS, please visit telus.com and follow us on Twitter (@TELUSnews) and on Instagram (@Darren_Entwistle).