Capital Desjardins inc. plans to issue domestically $500 million of 5.541% Series F Senior Notes due 2021, the company said Tuesday.

This $500 million issue is the second to be made by Capital Desjardins under the terms of a base shelf prospectus dated June 30, 2008, which provides for the issuance of a maximum of $2 billion of senior notes.

The notes mature on June 1, 2021, and bear interest at the rate of 5.541% per year, payable in arrears in equal semi-annual payments for the first seven years.

From June 1, 2016 until June 1, 2021, interest on the senior notes will be payable at an annual rate equal to the 90-day Bankers’ Acceptance Rate plus 3.88%, payable quarterly in arrears.

Desjardins Securities Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., TD Securities Inc., CIBC World Markets Inc., National Bank Financial Inc., RBC Dominion Securities Inc., Casgrain & Company Limited, HSBC Securities (Canada) Inc. and Laurentian Bank Securities Inc. will be acting as agents with respect to the offering of senior notes.

The senior notes have been rated A+ by Standard & Poor’s, a division of the McGraw-Hill Companies, Inc., Aa2 by Moody’s Investors Services, Inc. and AA (low) by DBRS Ltd.

Gross proceeds from the issue will be invested in subordinated notes to be issued by the Desjardins caisses. Such amounts will improve the capital base of the Desjardins caisses and will be used for their general purposes.

Capital Desjardins is a wholly owned subsidiary of the Fédération des caisses Desjardins du Québec. Its purpose is to offer its own securities in the financial markets and to invest the proceeds in securities issued by Desjardins caisses.

IE