Business
RE Royalties Completes Final Closing of Green Bonds for a Total of $10.2 Million
All amounts in Canadian dollars unless otherwise stated NOT FOR DISTRIBUTION TO U.S. NE...
About this update from Re Royalties Ltd.
[{"type":"text","content":"RE Royalties Completes Final Closing of Green Bonds for a Total of $10.2 MillionAll amounts in Canadian dollars unless otherwise statedNOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATESVANCOUVER, BC / ACCESSWIRE / March 1, 2021 / RE Royalties Ltd. (TSXV:RE) (\"RE Royalties\" or the \"Company\"), a global leader in renewable energy royalty-based financing, today announced the successful closing of the final and fourth tranche (the \"Fourth Tranche\") of its brokered private placement of Series 1-2020 First Ranking Senior Secured Green Bonds (the \"Green Bonds\"), maturing March 1, 2026 for aggregate gross proceeds of $364,000. The total gross proceeds raised to date in the Company's inaugural Green Bond offering is $10.2 million.\"We are very pleased to have received such incredible support from climate-conscious investors and have achieved our targeted goal of $10 million in our inaugural Green Bond offering. Our team has been reviewing a number of prospective projects and we expect that this capital will be invested into renewable and sustainable energy projects in the near term,\" said Bernard Tan, Chief Executive Officer of RE Royalties.In the Fourth Tranche, the Company has issued 364 Green Bonds with a principal amount of $1,000 per Green Bond for aggregate gross proceeds of $364,000. Each Green Bond bears interest at a rate of 6% per annum, payable quarterly and is senior secured against the Company's portfolio of royalty and loan investments.Integral Wealth Securities Limited acted as agent (the \"Agent\") pursuant to an agency agreement entered between the Company and the Agent with respect to the Green Bond offering. In connection with the closing of the Fourth Tranche, the Company paid the Agent a cash fee of $8,040 (the \"Agent's Fee\") and a corporate finance fee of $6,520.The Company also issued to the Agent 9,648 warrants (the \"Agent's Warrants\") under the Fourth Tranche and corporate finance warrants of 7,824. Each Agent's Warrant will entitle the holder to acquire one common share of the Company at an exercise price equal to $1.25 for a period of 24 months from the closing date.Net proceeds from the Green Bond offering will be used to finance or re-finance renewable energy projects that deliver environmental benefits as set out in our Green Bond Framework and will contribut...