Toronto/CMEDIA: The city of Toronto, the first and reportedly the only government in Canada to establish a Social Debenture Program, issued its third social bond on July 11 furthering its leadership in sustainable finance and equitable socioeconomic outcomes.
This social bond, issued on July 11 that will settle on July 27, was for $235 million, with a 20-year maturity, a coupon interest rate of 4.55 percent and will mature on July 27, 2042.
The investor confidence in both the City and Toronto’s economy remains strong despite sustained inflation and a rising interest rate environment.
With a total of 29 Canadian and international investors, this issuance was very well-received.
The proceeds will go towards funding Council-approved capital projects from several City divisions and agencies, such as Toronto Transit Commission’s Easier Access program, and the George Street Revitalization project.
The City’s Social Debenture Program leads to advancing positive social action and sustainability for all Torontonians with its eligible capital projects supporting social initiatives such as social and affordable housing, affordable basic infrastructure (access to transit, clean drinking water, and sewage and sanitation systems), access to essential long-term care, senior services, and emergency shelters, and socioeconomic advancement and empowerment in public libraries and community hubs.
Once again recognized for its leadership in the green, social and sustainability bond and loan market, the City is awarded for the second consecutive year, Social Bond of the Year – Local Authority/Municipality at the 2022 Environmental Finance Bond Awards.
The international award was for the issuance of the City’s social bond last year.
With one of the largest municipal borrowing programs in Canada, Toronto is a regular issuer in the public Canadian debt market, with several sinking fund debentures each year.
The City maintains an AA credit rating by S&P Global, an AA credit rating by DBRS Morningstar, and an Aa1 credit rating by Moody’s reflecting the City’s prudent financial management throughout the pandemic, strong financial support secured from other orders of government, and Toronto’s deep and diversified economy.
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