Telus (TSX:T) is taking the lead to raise a little green from some environmentally minded investors willing to finance the completion of its new downtown Vancouver headquarters.
The telecom giant announced Friday (July 24) its real estate partnership, a joint venture with Westbank, is issuing $225 million in green bonds to support its LEED-certified development — a first for real estate financing in North America, according to the company.
“Construction is nearing completion and we need to finance the loan going forward,” Telus chief sustainability officer Andrea Goertz told Business in Vancouver.
“And so we chose to do it under the green bond vehicle rather than doing a typical mortgage solution.”
The concept of green bonds — investments focused on ethical and sustainable projects — has only been around a few years but Goertz said it was important Telus show leadership when it comes to corporate sustainability.
“Being headquartered out of Vancouver, we definitely feel sustainability is near and dear to who we are as a company,” she said.
The new head office, Telus Garden, is being built to Leadership in Energy and Environmental Design (LEED) platinum specifications, hence the bond’s green designation.
A project must meet strict limitations on energy, water usage and carbon emissions to receive LEED certification.
Outside the U.S., Canada has the most LEED-certified square footage in the world, according to rankings released July 22 by the United States Green Building Council (USGBC).
Total LEED-certified square footage amounts to 26.63 million in Canada compared with China's 21.97 million. And Canada has more than 4,800 LEED-certified projects vs. China's 2,000.
The U.S., however, is home to 276.9 million square feet of LEED-certified floor space and nearly 54,000 LEED-certified projects.
Once complete, Telus’ 1-million-square-foot development will include a 22-storey office tower and 47-storey residential tower, along with green retail space on Robson and Georgia streets.
Telus has been marketing the bonds to brokers “for a few weeks” but wasn’t in a position to announce their availability to the public until they had been issued, according to Goertz.
The 10-year, 3.4% bonds mature July 22, 2025.
