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Summary
- In a first for the Canadian telecommunications industry, BCE Inc (TSX:BCE) has introduced Sustainability Bond Offering to help support its ESG (environmental, social and governance) leadership.
- The telecom giant said on Tuesday, May 25, that it has come up with a public offering of C$ 500 million in aggregate principal amount of medium term notes (MTN) debentures.
- Following this development, BCE shares climbed marginally to close at C$ 59.8 on Tuesday, narrowly missing its 52-week high of C$ 60.1 (June 8, 2020).
In a first for the Canadian telecommunications industry, BCE Inc (TSX:BCE) has introduced Sustainability Bond Offering to help support its ESG (environmental, social and governance) leadership.
The telecom giant said on Tuesday, May 25, that it has come up with a public offering of C$ 500 million in aggregate principal amount of medium term notes (MTN) debentures.
Following this development, BCE shares climbed marginally to close at C$ 59.8 on Tuesday, narrowly missing its 52-week high of C$ 60.1 (June 8, 2020).
What is a Sustainability Bond & Why BCE Opted For It?
Sustainability Bonds are issued by companies to use the proceeds as funds for the development of green and social projects.
BCE's Sustainability Bond comes after it earned the title of being the first North American communications firm with ISO 50001 certification for energy management in March 2021.
It also ranks globally among the greenest employers and reportedly leads in sustainable operations. BCE also plans to become carbon neutral by 2025.
The Series M-56 MTN Debentures are available in all Canadian provinces at a price of C$ 99.877 per C$ 100 principal amount. The offering of these MTN debentures is likely to close on Friday, May 28.
BCE Inc’s (TSX:BCE) Stock Performance & Financials
BCE stocks grew about 10 per cent year-to-date (YTD), outpacing the TSX 300 Composite Index, which dipped two per cent this year.
1-year chart of BCE’s stock performance, volume and moving average exponential (Source: Refinitiv)
Bell Canada offers a return on equity of 13.6 per cent and its debt-to-equity ratio stands at 1.6, as per the data from TMX.
The telecom company distributes a quarterly dividend of C$ 0.875 among its shareholders and the next payable date for its dividend is July 15, 2021.
BCE’s operating revenues increased by 1.2 per cent year-over-year (YoY) to C$ 5.7 billion in first quarter 2021. Its adjusted EBITDA rose to C$ 2.4 billion, up 0.5 per cent YoY, in the latest quarter.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
