IBI Group Inc. Announces $50 Million Offering of Convertible Debentures

TORONTO, ONTARIO--(Marketwire - Jan. 6, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

IBI Group Inc. (TSX:IBG) ("IBI") announced today that it has reached an agreement with a syndicate of underwriters led by CIBC, TD Securities Inc. and National Bank Financial Inc. to issue, on a bought-deal basis, $50 million of convertible unsecured subordinated debentures (the "Debentures"). IBI has granted the underwriters an over-allotment option ("Over-allotment Option"), exercisable in whole or in part at any time up to 30 days after closing, to purchase up to an additional $7.5 million of Debentures at the same offering price.

The Debentures have a maturity date of June 30, 2018. The Debentures have a coupon of 6.00% per annum and will pay interest semi-annually in arrears on June 30 and December 31 in each year commencing on June 30, 2011. Each $1,000 principal amount of Debenture is convertible into approximately 47.6190 common shares of IBI, at any time, at the option of the holder, representing a conversion price of $21.00 per common share.

IBI intends to use the net proceeds from the financing for debt repayment and for general corporate purposes.

About IBI Group Inc.

IBI Group Inc. holds an indirect 72% in IBI Group, a partnership which, directly and through its subsidiary entities, provides professional services, including planning, design, implementation, analysis of operations and other consulting services in relation to four main areas of development, being urban land, building facilities, transportation networks and systems technology. The remaining 28% of IBI Group is owned by IBI Group Management Partnership. On a partially diluted basis, assuming the exchange of its units of IBI Group for common shares of IBI Group Inc., IBI Group Management Partnership together with IBI Group Investment Partnership holds a 46% interest in IBI Group Inc.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Debentures have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.