TELUS announced today it has successfully closed its previously
announced offering of US$900 million 3.400% senior unsecured
Sustainability-Linked notes with a long 10-year maturity. The notes
were offered through a syndicate of underwriters led by J.P Morgan
Securities LLC, TD Securities (USA) LLC, and Wells Fargo
Securities, LLC.
“Today, with the successful closing of our inaugural US
Sustainability-Linked Bond, our team is at the forefront of
sustainability practices, setting a leadership example in respect
of leveraging behaviour-based financing to advance our
sustainability goals,” said Darren Entwistle, President and CEO.
“Importantly, our science-based, greenhouse gas emissions reduction
target further validates our commitment to reduce our carbon
footprint and care for the planet that 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 indebtedness, including the repayment of commercial
paper (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’ second 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 1.00% per annum, as further detailed in the prospectus
supplement TELUS filed to its short form base shelf prospectus
dated May 25, 2021 with the Securities and Exchange Commission as
part of an effective shelf registration statement on Form F-10. 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 the Company pursuant to the Framework. The interest
rate on the notes, however, can in no event exceed the initial rate
of 3.40% 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 notes
were not offered in Canada or to any resident of Canada except in
transactions exempt from the prospectus requirements of applicable
Canadian securities laws.
This bond 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 and, at the time of publication of the
Framework, is 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 securities regulatory authority in Canada or the United
States, nor has any authority passed upon the accuracy or adequacy
of the short form base shelf prospectus or the prospectus
supplement.
Copies of the short form base shelf prospectus and the
prospectus supplement relating to the offering of the notes filed
with the US Securities and Exchange Commission 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 available
electronically on the Electronic Data Gathering, Analysis, and
Retrieval system, administered by the US 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.
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 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 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 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.
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, 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.
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
throughout the agriculture value chain, supporting better food
outcomes from improved agri-business 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 and disruptive brands across high-growth industry verticals,
including tech and games, communications and media, ecommerce and
FinTech, healthcare, and travel and hospitality. TELUS and TELUS
International operate in 25+ countries around the world.
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 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 and
follow us on Twitter (@TELUSnews) and on Instagram
(@Darren_Entwistle).
Investor RelationsIan McMillan(604)
695-4539ir@telus.com
Media RelationsSteve Beisswanger(514)
865-2787Steve.Beisswanger@telus.com
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