TELUS announced today it has priced $500 million of senior
unsecured notes with a 10-year maturity. The notes are offered
through a syndicate of agents led by BMO Capital Markets,
Scotiabank and TD Securities Inc. Closing of the offering is
expected to occur on or about March 28, 2023.
The 4.95% Sustainability-Linked notes, Series
CAJ, were priced at $99.828 per $100 principal amount for an
effective yield of 4.972% per annum until maturity, subject to a
possible interest rate step-up, and will mature on March 28,
2033.
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 general
working capital purposes), and for other general corporate
purposes.
The 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’
fourth 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 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 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 notes, however, can in no event exceed the
initial rate of 4.95% 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 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 and
ESG 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 none of the notes are being
offered in the United States or to or for the account or benefit of
any U.S. person.
The notes 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 the notes. Copies of the short form base shelf prospectus and
the prospectus supplement relating to the offering of the 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 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 notes if TELUS fails to reach the
Sustainability Performance Target by the required date, the
increase in the interest rate per annum of the notes if TELUS fails
to reach additional ESG targets as provided for in a Future SLB(s),
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 and ESG 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 (in part 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. 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 2022 annual
management’s discussion and analysis, 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 $18 billion in
annual revenue and 18 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 30 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 leader,
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 covering 68 million lives, 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 and our team to
contribute $1.5 billion, including 2 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 at @TELUSNews on Twitter and @Darren_Entwistle
on Instagram.
Investor Relations Robert
Mitchell(647) 837-1606 ir@telus.com
Media Relations Steve
Beisswanger (514) 865-2787 Steve.Beisswanger@telus.com
Telus International CDA (TSX:TIXT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Telus International CDA (TSX:TIXT)
Historical Stock Chart
From Jul 2023 to Jul 2024