iA Financial Group Announces the Closing of Offering of $300 million of 3.187% Fixed/Floating Unsecured Subordinated Debentures
Not for distribution to U.S. newswire services or for dissemination in the United States.
iA Financial Group (the “Company”) announced today the closing of its previously announced offering of $300 million aggregate principal amount of 3.187% fixed/floating unsecured subordinated debentures due February 25, 2032 (the “Debentures”).
The Debentures were issued as “Sustainability Bonds” under the iA Financial Group Sustainability Bond Framework (the “Framework”) and represent Company’s inaugural sustainability bonds. The Framework is available on the Company’s website at ia.ca.
The Debentures will mature on February 25, 2032 and, for the period from February 25, 2022 to but excluding February 22, 2027, will bear interest at a fixed annual rate of 3.187%, payable semi-annually, and, for the period from February 25, 2027 to but excluding February 25, 2032, will bear interest at a variable annual rate equal to the 3-month bankers’ acceptance rate (CDOR) plus 0.91%, payable quarterly. Subject to prior regulatory approval, the Company may redeem the Debentures, in whole or in part, on or after February 25, 2027.
The Debentures have been rated “A (low)” by DBRS Limited and “A-” by S&P Global Ratings, a division of S&P Global, Inc.
The Debentures were offered through a syndicate of agents led by CIBC World Markets Inc., National Bank Financial Inc. and TD Securities Inc., as co-leads and bookrunners, and including BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., Scotia Capital Inc. and iA Private Wealth Inc. CIBC World Markets Inc. and National Bank Financial Inc. were also Co-Sustainability Structuring Advisors.
The Debentures were issued under a prospectus supplement dated February 22, 2022 to the short form base shelf prospectus dated February 25, 2021. Details of the offering are set out in the prospectus supplement which is available on the SEDAR website at sedar.com and on the Company’s website at ia.ca.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offering, solicitation or sale would be unlawful.
The Debentures have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or the securities laws of any state of the United States of America, and may not be offered, sold or delivered, directly or indirectly, within the United States, its territories, its possessions and other areas subject to its jurisdiction or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act), except in certain transactions exempt from, or not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities within the United States