Toronto Issues 4th Debenture Of This Year

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Pic: Social Debenture Framework Report/toronto.ca

TORONTO: The City of Toronto is reopening one of its recently settled debenture offerings for an additional $250 million to help finance critical capital projects.

This is the City’s fourth public debenture issuance this year and the lowest 30-year term rate the City has ever issued with an all-in cost of 2.436 percent.

This conventional bond issue, which is a reopening of a 30-year maturity with a coupon interest rate of 2.80 percent, will mature on November 22, 2049. This reissuance brings the bond’s outstanding amount to $600 million.

The proceeds from this issuance will be used to fund the completed portion of the approved capital projects from several City divisions and agencies, such as:
• Transportation Services
• Toronto Paramedic Services
• Facilities Management
• Economic Development and Culture, and
• Exhibition Place.

Demand for municipal bonds has remained strong in recent months, demonstrating the confidence investors have in the City of Toronto. Although the COVID-19 pandemic has caused economic impacts across the globe, capital markets continue to be focused on rebuilding economies.

Toronto has one of the largest municipal borrowing programs in Canada. It is a regular issuer in the public debt market, with several sinking fund debentures each year. Debenture issues are initially distributed and traded by several investment dealers.