Telus sells green bonds

Article Excerpt

TELUS, $27.90 (Toronto symbol T; Shares outstanding: 1.4 billion; Market cap: $37.6 billion; TSINetwork Rating: Above Average; Dividend yield: 4.5%; plans to spend roughly $3.5 billion on upgrades to its networks in 2021. That includes the ongoing rollout of its new 5G wireless systems, which are up to 100 times faster than its current network. To help finance that spending, Telus has now sold $750 million worth of bonds linked to its greenhouse gas (GHG) emissions. The interest rate on those new bonds is 2.85%. However, if the company fails to cut its GHG emissions by 46% from its 2019 levels by December 31, 2030, the interest rate would then raise to 3.85% for the final year (the bonds mature on November 13, 2031). That would cost Telus an extra $7.5 million. Telus is confident that it can meet its GHG target and avoid that penalty. The regular rate of 2.85% is also lower than the rate it would have to…

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