TELUS, a leading communications technology company with an annual revenue of over $20 billion and a worldwide customer base of over 19 million connections, announced today the pricing of $1.8 billion in senior unsecured notes. This includes three series of notes with maturities of 4 years and 10 months, 7 years, and 10 years, respectively. The syndicate of agents leading the offering is comprised of CIBC World Markets Inc, RBC Dominion Securities Inc, and Scotia Capital Inc., and the closing is expected to take place on or around February 15, 2024.
The first series, 4.80% Notes, Series CAO, has an effective yield of 4.826% per annum until maturity, and will mature on December 15, 2028. The pricing of the notes was at $99.895 per $100 principal amount.
Additionally, the second series, 4.95% Notes, Series CAP, was priced at an effective yield of 5.000% per annum until maturity and will mature on February 18, 2031. The pricing for this series was at $99.707 per $100 principal amount.
Lastly, 5.10% Sustainability-Linked notes, Series CAN, were priced at an effective yield of 5.146% per annum. The notes are subject to a potential interest rate step-up and will mature on February 15, 2034. The pricing for this series was at $99.644 per $100 principal amount.
The Series CAN notes are a type of “Sustainability-Linked Bonds” issued pursuant to TELUS’ Sustainability-Linked Bond Framework. As part of this framework, TELUS has committed to reducing its absolute Scope 1 and 2 greenhouse gas emissions by 46% from 2019 levels by 2030. If TELUS does not achieve this target by December 31, 2030, the interest payable on the Series CAN Notes will increase by 0.50% per annum, as further detailed in the prospectus supplement filed by TELUS.
The net proceeds from this offering will be used for the repayment of outstanding debts, including the repayment upon maturity of TELUS’ 3.35% Series CK Notes due in April 2024, as well as the repayment of commercial paper and for other general corporate purposes.
The Series CAN Note offering demonstrates TELUS’ commitment to environmental sustainability by linking financing to the achievement of ambitious ESG targets. Further information is available in the TELUS Sustainability and ESG Report, which is accessible on TELUS’ website.
TELUS is supported by Sustainalytics, a leading independent firm, which has confirmed that the Framework aligns with the International Capital Market Association’s Sustainability-Linked Bond Principles, 2020.
Investors are reminded that the notes have not been registered under the U.S. Securities Act of 1933, and they are not being offered in the U.S. or to any U.S. person.
For additional information on the offering, including a prospectus supplement and short form base shelf prospectus, investors may obtain documents from the Chief Legal and Governance Officer of TELUS, as well as through the System for Electronic Document Analysis and Retrieval of the Canadian Securities Administrators (SEDAR).
Forward-Looking Statements: This news release contains forward-looking statements pertaining to the offering, including the anticipated closing date, use of the net proceeds of the offering, and TELUS’ commitments to reduce its greenhouse gas emissions by 2030. These statements involve inherent risks and uncertainties, and readers are urged to be cautious regarding their reliance on forward-looking statements.
For more information, please visit TELUS’ website or follow TELUSNews on X and Darren_Entwistle on Instagram. For investor relations, please contact Ian McMillan at (604) 317-8768. For media relations, please contact Steve Beisswanger at (514) 865-2787. Source: TELUS Corporation.
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