Vancouver-based Telus became the first Canadian company to issue sustainability-linked bonds, or SLBs, and encountered demand for its debt that far exceeded supply.
Telus Corp.
The concept of linking financings to ESG goals was developed in Europe, and there are now more than US$44-billion of SLBs outstanding worldwide.
The new Telus debt pays 2.85 per cent in annual interest over the next 10 years, significantly lower than the rate the company would pay on a traditional bond.
However, if Telus fails to hit its goal of reducing greenhouse gas emissions by 46 per cent by 2030, the interest rate on its bonds rises one percentage point, to 3.85 percent, after that date.
RBC Capital Markets led the transaction, along with Scotiabank and BMO Capital Markets.
In addition to targeting a 35-per-cent reduction in GHG emissions by 2030, Enbridge has set targets to have 28-per-cent representation from racial and ethnic groups in its work force, 40-per-cent gender diversity across the organization, and a board of directors that is 40-per-cent female by 2025.