Ontario Construction News staff writer
The City of Toronto is reopening its Green Bond, originally issued in 2019, for an additional offering of $130 million to help finance capital projects that mitigate effects of climate change. This is the fifth public debenture issuance this year and the lowest 20-year term rate the city has ever issued with an all-in cost of 2.184 per cent.
The $130 million issue, which is a reopening of a 20-year maturity with a coupon interest rate of 2.6 per cent, will mature on September 24, 2039. The reopening brings the bond’s outstanding amount to $330 million.
Toronto established a Green Debenture Program in 2018. Green bonds help fund capital projects that meet the environmental objectives, including:
- mitigation and adaptation to the effects of climate change
- abatement and avoidance of GHG emissions
- resource recovery and a hierarchical approach to waste management
- air, water and soil pollution prevention and control
Proceeds from this issuance will be used to fund the completed portion of the approved capital projects that deliver environmental benefits from several municipal divisions and agencies, including Toronto Community Housing energy efficiency retrofits, the Port Lands flood protection project and TTC subway track.
The city is a regular issuer in the public Canadian debt market, with several sinking fund debentures each year. This year, $980 million in public debt, including social, green and conventional bonds.
Debenture issues are initially distributed and traded by several Canadian investment dealers. Retail investors can contact their financial institutions to inquire about investing in the City’s debentures.
“Investors continue to look for environmentally and socially responsible investment opportunities. We’re proud to be a leader in the public sector, funding critical projects that make real change and reduce our carbon footprint,” said councillor Gary Crawford, budget chair.