Desjardins Group announces debut issue of $500 million in sustainable bonds in the Canadian market

MONTREAL, Sept. 9, 2021 /CNW Telbec/ - Desjardins Group announced today that it has launched an initial offering of CAN$500 million aggregate principal amount of sustainable bonds. Desjardins Group's Sustainable Bond Framework has been rated "Advanced," the highest level, by V.E (formerly Vigeo Eiris), an independent international provider of ESG research, evaluation and ratings. This initial issuance is part of a broader program that should lead Desjardins to solicit the sustainable bond market on a number of occasions in the next few years.

"At Desjardins, sustainability goes hand in hand with our mission and cooperative values. As one of the largest organizations in Canada, our actions to speed up the pace of the energy transition are more meaningful than ever. By championing green, responsible products and services and issuing sustainable bonds, we hope to have a positive influence on our members and clients and lead the way to an economy that produces fewer and fewer carbon emissions, which will benefit society as a whole," said Desjardins President and CEO Guy Cormier.

The net proceeds raised from this issue will be used to finance or refinance loans, investments and internal or external projects that meet the green assets or social assets eligibility criteria, such as renewable energy, sustainable food production and affordable housing. Other eligible categories may include energy efficiency, green buildings, clean transportation, sustainable water and wastewater management, pollution prevention and control, sustainable management of natural resources, employment generation through SME financing and access to essential services.

In line with its risk-based approach, Desjardins has set exclusionary criteria so that proceeds will not knowingly be used to finance any businesses whose principal activity is any of the following:

• Tobacco
• Thermal coal
• Unconventional or nuclear weapons
• Predatory lending
• Gambling
• Adult entertainment

"Desjardins was the first Canadian financial institution to sign the Principles for Responsible Banking (PRB, 2019), following our signing of the Principles for Sustainable Insurance (PSI, 2019) and the Principles for Responsible Investment (PRI, 2019). Signing these commitments and issuing sustainable bonds show that we are taking more action than ever to support a just energy transition and contribute to economic and social well-being", adds Vice-President and Chief Treasurer Yassir Berbiche.

In April 2021, Desjardins Group announced the implementation of an ambitious plan to achieve net zero emissions by 2040 in its extended operations and in its financing and capital investment activities in 3 carbon-intensive sectors: energy, transportation and real estate. Projects financed through the issuance of sustainable bonds will help Desjardins reach this objective.

In response to growing expectations among members and clients for climate action, the plan builds on concrete measures in place since 2017 and reflects the organization's willingness to speed up its climate action and adaptation initiatives, and play a leadership role in this area.

For more information about Desjardins Group's social responsibility track record, see the 2020 Social and Cooperative Responsibility Report.

More information about the issuance

The sustainable bonds will be issued by the Fédération des caisses Desjardins du Québec (the "Federation") in the form of Senior Notes, bearing interest at a fixed rate of 1,587% and due September 10, 2026 (the "Notes"). The Notes will constitute direct, unsecured and unsubordinated bonds from the Federation. They will be ranked equally and proportionally with all of the Federation's other unsecured and unsubordinated bonds, loans and deposits, whether they are currently outstanding or created at a later date, except where set forth by law and subject to the exercise of resolution powers of the Autorité des marchés financiers (the "AMF"), specifically, under the second paragraph of section 40.50 of Quebec's Deposit Institutions and Deposit Protection Act, which gives the AMF certain powers in the event of the resolution of the Federation, such as the power to write off any part of the Federation's internal recapitalization instruments or to convert them into contributed capital securities. In the event of dissolution, insolvency, bankruptcy or liquidation of the Federation in accordance with applicable laws, the Notes will have equal ranking, in terms of right of payment, with all deposit liabilities and other unsecured and unsubordinated bonds from Desjardins Group, except to the extent set forth by law and subject to the exercise of resolution powers.

Desjardins Securities and HSBC Securities (Canada) are acting as joint bookrunners and structuring agents in connection with the sustainable bond offering. Scotia Capital is also acting as a joint bookrunner. The issuance is scheduled to close on September 10, 2021.

This press release does not constitute an offer to sell or buy or the solicitation of an offer to buy or sell any security and shall not constitute an offer, solicitation, sale or purchase of any securities in any jurisdiction in which such offering, solicitation, sale or purchase would be unlawful.

About Desjardins Group

Desjardins Group is the leading cooperative financial group in North America and the fifth largest cooperative financial group in the world, with assets of $389.3 billion. In 2020 it was ranked as one of the world's Top 100 Employers by Forbes magazine. To meet the diverse needs of its members and clients, Desjardins offers a full range of products and services to individuals and businesses through its extensive distribution network, online platforms and subsidiaries across Canada. Ranked among the World's Strongest Banks according to The Banker magazine, Desjardins has one of the highest capital ratios and credit ratings in the industry.

Caution concerning forward-looking statements
Certain statements made in this press release may be forward-looking. These statements include, but are not limited to, statements relating to the closing of the sustainable bond issuance, the use of the net proceeds and other Desjardins ESG initiatives described in this press release. By their very nature, forward-looking statements involve assumptions, uncertainties and inherent risks, both general and specific. It is therefore possible that, due to many factors, the assumptions made may be incorrect, or the predictions, forecasts or other forward-looking statements, as well as Desjardins Group's objectives and priorities, may not materialize or may prove to be inaccurate and that actual results may differ materially. Furthermore, the uncertainty created by the COVID-19 pandemic has greatly increased this risk by adding to the difficulty of making assumptions, predictions, forecasts or other forward-looking statements compared to previous periods. We caution readers against placing undue reliance on forward-looking statements since a number of factors, many of which are beyond Desjardins Group's control and whose impacts are therefore difficult to predict could influence, individually or collectively, the accuracy of the forward-looking statements in this press release. Additional information on these and other factors are available in the "Risk management" section and under "COVID-19 pandemic" in the "Significant events" section of Desjardins Group's 2020 MD&A and its MD&A for the second quarter of 2021. Although Desjardins Group believes that the expectations expressed in these forward-looking statements are reasonable and based on a solid foundation, it cannot guarantee that these expectations will materialize or be proven correct. Desjardins Group does not undertake to update any verbal or written forward-looking statements that may be made from time to time by or on behalf of Desjardins Group, except as required under applicable securities legislation.

SOURCE Desjardins Group