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 the effects of climate change.
This is the city’s 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.
“Green Bonds are an important tool to help the City deliver critical infrastructure,” said Mayor John Tory. “The funds from these bonds ensure we can continue making important investments that will help protect the environment and improve the City for future generations.”
Toronto was one of the first municipalities in Canada to establish a Green Debenture Program in 2018. Green bonds help fund capital projects that meet the city’s 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, and
- air, water and soil pollution prevention and control.
The proceeds from this issuance will be used to fund the completed portion of the approved capital projects that deliver environmental benefits from several city divisions and agencies, including Toronto Community Housing energy efficiency retrofits, the Port Lands Flood Protection Project and TTC subway track.
The city has one of the largest municipal borrowing programs in Canada. It is a regular issuer in the public Canadian debt market, with several sinking fund debentures each year. This year, Toronto has issued a total of $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,” said Councillor Gary Crawford (Scarborough-Southwest) and chair of the Budget Committee. “We’re proud to be a leader in the public sector, funding critical projects that make real change and reduce our carbon footprint.”
Toronto is home to more than 2.9 million people and is the fourth largest city in North America.
More information about Toronto’s Green Debenture Program is available here.
More information about Toronto’s Debenture Programs is available here.