TELUS announced today it has priced $2.0 billion of senior
unsecured notes in three series, the first with a 10-year maturity,
the second with a 30-year maturity and the third with a 7-year
maturity. The notes are offered through a syndicate of agents led
by CIBC Capital Markets, RBC Capital Markets and Scotiabank.
Closing of the offering is expected to occur on or about September
13, 2022.
The 5.25% Sustainability-Linked notes, Series
CAG (the “Series CAG Notes”), were priced at $99.673 per $100
principal amount for an effective yield of 5.293% per annum until
maturity, subject to a possible interest rate step-up, and will
mature on November 15, 2032.
The 5.65% notes, Series CAH, were priced at
$99.613 per $100 principal amount for an effective yield of 5.677%
per annum until maturity, and will mature on September 13,
2052.
The 5.00% notes, Series CAI, were priced at
$99.569 per $100 principal amount for an effective yield of 5.074%
per annum until maturity, and will mature on September 13,
2029.
The net proceeds of this offering will be used
for the repayment of outstanding indebtedness, including the
repayment of commercial paper (incurred for general working capital
purposes) and the reduction of cash amounts outstanding under an
arm’s length securitization trust to which an affiliate of TELUS
sells interests in certain trade receivables (incurred for working
capital purposes), and for other general corporate purposes.
The Series CAG notes are “Sustainability-Linked
Bonds” issued pursuant to TELUS’ Sustainability-Linked Bond
Framework announced on June 14, 2021, as it may be amended,
restated and/or replaced from time to time (the “Framework”) and
will be TELUS’ third bond offering under the Framework. As part of
the Framework, TELUS has committed to reducing its absolute Scope 1
and 2 greenhouse gas (“GHG”) emissions by 46% from 2019 levels by
2030. Should TELUS fail to achieve this target (the “Sustainability
Performance Target”) by December 31, 2030, the interest payable on
the Series CAG Notes will increase by 0.75% per annum, as will be
further detailed in the prospectus supplement that TELUS will be
filing to its short form base shelf prospectus dated August 8, 2022
with securities regulatory authorities in each of the provinces of
Canada. The interest payable on the Series CAG Notes may also
increase in certain circumstances if TELUS fails to meet additional
sustainability and/or environmental, social or governance (“ESG”)
targets as provided for in a future “Sustainability-Linked Bond” (a
“Future SLB”) issued by TELUS pursuant to the Framework. The
interest rate on the Series CAG Notes, however, can in no event
exceed the initial rate of 5.25% by more than 1.50% per annum in
the aggregate, whether as a result of the failure to achieve the
Sustainability Performance Target and/or any targets under one or
more Future SLBs.
The Series CAG Note offering supports TELUS’
commitment to environmental sustainability by linking financing to
the achievement of ambitious ESG targets. The target set out in the
Framework was approved by the Science Based Targets initiative
(“SBTi”), further demonstrating TELUS’ global sustainability
leadership and support of the world’s fight against climate change.
The Sustainability Performance Target is consistent with reductions
required to limit warming to below 1.5°C, which at the time of
publication of the Framework, was considered the most ambitious
designation available through the SBTi process.
TELUS will report annually on its performance
against the Sustainability Performance Target and will also obtain
an annual independent and external verification of its performance
against the Sustainability Performance Target in the form of a
limited assurance report. TELUS’ performance as well as the limited
assurance report will be included in its annual Sustainability
Report, or other similar report(s) as the case may be, and will be
available on TELUS’ website.
Sustainalytics, a leading independent ESG
research, ratings and analytics firm, issued a Second Party Opinion
in June 2021 confirming that the Framework aligns with the
International Capital Market Association's Sustainability-Linked
Bond Principles, 2020.
This media release does not constitute an offer
to sell or the solicitation of an offer to buy the securities in
any jurisdiction. The securities being offered have not been
approved or disapproved by any Canadian securities regulatory
authority, nor has any authority passed upon the accuracy or
adequacy of the short form base shelf prospectus or the prospectus
supplement. The notes have not been registered under the U.S.
Securities Act of 1933, as amended, and no notes of any series are
being offered in the United States or to or for the account or
benefit of any U.S. person.
The notes of each series are being offered
pursuant to a prospectus supplement to the short form base shelf
prospectus of TELUS dated August 8, 2022. The short form base shelf
prospectus and prospectus supplement contain important detailed
information about each series of notes. Copies of the short form
base shelf prospectus and the prospectus supplement relating to the
offering of each series of notes when filed with securities
regulatory authorities in Canada may be obtained from the Chief
Legal and Governance Officer of TELUS at 510 W. Georgia St., 23rd
Floor, Vancouver, British Columbia V6B 0M3 (telephone
604-695-6420). Copies of these documents are, or will be, available
electronically on the System for Electronic Document Analysis and
Retrieval of the Canadian Securities Administrators (“SEDAR”), at
www.sedar.com. Investors should read the short form base shelf
prospectus and prospectus supplement before making an investment
decision.
Forward-Looking Statements
This news release contains statements about
future events pertaining to the offering, including the anticipated
closing date of the offering, the intended use of the net proceeds
of the offering, the Framework, including TELUS’ commitment to
reduce its absolute Scope 1 and 2 GHG emissions by 46% from 2019
levels by 2030, the increase in the interest rate per annum of the
Series CAG Notes if TELUS fails to reach the Sustainability
Performance Target by the required date, the increase in the
interest rate per annum of the Series CAG Notes if TELUS fails to
reach additional ESG targets as provided for in a Future SLB(s),
and TELUS’ commitments to report annually on its performance
against its Sustainability Performance Target, to obtain an annual
independent and external verification of its performance against
the Sustainability Performance Target in the form of a limited
assurance report and to include such performance and such limited
assurance report in TELUS’ annual Sustainability Report or other
similar reports and make them available on TELUS’ website. By their
nature, forward-looking statements require us to make assumptions
and predictions and are subject to inherent risks and uncertainties
including: risks associated with capital and debt markets; TELUS’
ability to identify, procure and implement solutions to reduce
energy consumption and adopt cleaner sources of energy; TELUS’
ability to identify and make suitable investments in renewable
energy, including in the form of virtual power purchase agreements;
TELUS’ ability to continue to realize significant absolute
reductions in energy use and the resulting GHG emissions in its
operations (including as a result of programs and initiatives
focused on our buildings and network); and other risks associated
with achieving TELUS’ goals to reduce its GHG emission targets by
2030. There is significant risk that the forward-looking statements
will not prove to be accurate. The timing and closing of the
above-mentioned offering are subject to customary closing
conditions and other risks and uncertainties. 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 news release is subject to the
disclaimer and the qualifications and risk factors as set out in
our 2021 annual management’s discussion and analysis (MD&A) and
our Q2 2022 MD&A, and in other TELUS public disclosure
documents and filings with 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 news release
describe our expectations at the date of this news 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 forward-looking statements.
About TELUS
TELUS (TSX: T, NYSE: TU) is a dynamic,
world-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 global-leading
technology and compassion to drive social change and enable
remarkable human outcomes. Our longstanding commitment to putting
our customers first fuels every aspect of our business, making us a
distinct leader in customer service excellence and loyalty. The
numerous, sustained accolades TELUS has earned over the years from
independent, industry-leading network insight firms showcase the
strength and speed of TELUS’ global-leading networks, reinforcing
our commitment to provide Canadians with access to superior
technology that connects us to the people, resources and
information that make our lives better.
Operating in 28 countries around the world,
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 moderation, for
global and disruptive brands across high-growth industry verticals,
including tech and games, communications and media and eCommerce
and fintech.
TELUS Health is a global healthcare company,
which provides employee and family preventative healthcare and
wellness solutions. Our TELUS team, along with our 100,000 health
professionals, are leveraging the combination of TELUS’ strong
digital and data analytics capabilities with our unsurpassed client
service to dramatically improve remedial, preventative and mental
health outcomes for over 50 million people, and growing, around the
world. As the largest provider of digital solutions and digital
insights of its kind, TELUS Agriculture & Consumer Goods
enables efficient and sustainable production from seed to store,
helping improve the safety and quality of food and other goods in a
way that is traceable to end consumers.
Driven by our determination and vision to
connect all citizens for good, our deeply meaningful and enduring
philosophy to give where we live has inspired TELUS, our team
members and retirees to contribute more than $900 million, in cash,
in-kind contributions, time and programs, and 1.8 million days of
service since 2000. This unprecedented generosity and unparalleled
volunteerism have made TELUS the most giving company in the world.
Together, let’s make the future friendly.
For more information about TELUS, please visit
telus.com, follow us @TELUSNews on Twitter and @Darren_Entwistle on
Instagram.
Investor RelationsIan
McMillan(604) 695-4539ir@telus.com
Media RelationsSteve
Beisswanger(514) 865-2787 Steve.Beisswanger@telus.com
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