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Boston Properties Prices $850M Offering of Green Bonds

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Boston Properties Inc., the largest publicly-traded owner and manager of class A office properties in the US, recently revealed that its operating partnership, Boston Properties Limited Partnership, has agreed to sell $850 million of 3.400% senior unsecured notes due 2029 in an underwritten public offering through BofA Securities Inc., Jefferies LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., BNY Mellon Capital Markets, LLC, Wells Fargo Securities, LLC, U.S. Bancorp Investments, Inc., Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc. and TD Securities (USA) LLC, as joint book-running managers.

The notes were priced at 99.815% of the principal amount to yield 3.422% to maturity. The notes will mature on June 21, 2029, unless earlier redeemed. The offering is expected to close on June 21, 2019, subject to the satisfaction of customary closing conditions.

The estimated net proceeds from this offering are expected to be approximately $841.3 million. BPLP intends to allocate an amount equal to the net proceeds from this offering to the financing and refinancing of recently completed and future “eligible green projects” in the United States.

This is BPLP’s second green bond offering following its initial $1.0 billion green bond offering in November 2018. BPLP currently owns and actively manages more than 21 million square feet of green building projects that have been certified at the two highest LEED certification levels of Gold and Platinum. BPLP actively works to promote its growth and operations in a sustainable and responsible manner and has earned seven consecutive Global Real Estate Sustainability Benchmark (GRESB) “Green Star” recognitions and the highest GRESB 5-star Rating. Over the last 10 years, BPLP has implemented energy conservation projects and other measures in actively managed office buildings that have reduced site energy use intensity by 24% and greenhouse gas emissions intensity by 39%.

Pending the allocation of an amount equal to the net proceeds of the notes to “eligible green projects,” BPLP may use the net proceeds from this offering to repay borrowings outstanding under its unsecured revolving line of credit and/or invest in short-term, interest-bearing, investment-grade securities. Net proceeds allocated to previously incurred costs associated with “eligible green projects” will be available for repayment of debt or other uses.