The Montreal Port Authority issues $150 million in debentures
Press release
Montreal, April 29, 2021 — The Montreal Port Authority (MPA) confirms that on March 22, 2021, it issued its first series of debentures, Series A, with a face value of $150 million, maturing in March 2051.
The net proceeds of the issue are used to repay existing bank debt and to finance the MPA's overall operations, primarily its capital program.
The issue was made on a private placement basis to institutional investors and carries an interest rate of 3.24%.
S&P assigned the MPA's inaugural issue an AA rating, attesting its sound financial health and solid reputation.
CIBC World Markets Inc. acted as Sole Lead Agent and Bookrunner. The other agents of the syndicate were RBC Dominion Securities Inc, BMO Capital Markets and Desjardins Securities Inc. Dentons Canada LLP acted as legal counsel to the MPA. McCarthy Tétrault LLP acted as legal counsel to the Agents. In addition, BNY Trust Company of Canada serves as trustee.
About the Port of Montreal
Operated by the Montreal Port Authority (MPA), the Port of Montreal is the second largest port in Canada and a diversified transshipment centre that handles all types of goods: containerized and non-containerized cargo, liquid bulk and dry bulk. The only container port in Quebec, it is a destination port served by the largest shipping lines in the world. It is also an intermodal hub with a service offering that is unique in North America, featuring its own rail network directly dockside connected to Canada’s two national rail networks. The MPA also operates a Cruise Terminal and a Port Centre.
The MPA factors economic, social and environmental components into its corporate initiatives. This commitment is governed by a sustainable development policy whose guiding principles focus on involvement, cooperation and accountability. Port activity supports 19,000 jobs and generates $2.6 billion in economic benefits annually.
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