The City of Toronto has announced that it is reopening its raise for capital projects through the issuance of an additional $200 million in bonds. The long-term debt will be used for critical initiatives across several divisions, including the TTC, Toronto Public Health, Long-Term Care Homes, Solid Waste, Toronto Public Library and Toronto’s Sustainable Energy Plan. This issuance will carry a fixed coupon of 2.65% and will mature on November 9, 2029.
To date, there has been strong interest from investors in City of Toronto bonds with expressions of interest already far outweighing the issuance. The announcement indicates ongoing private sector confidence in the City of Toronto’s long-term financial capacity and the City’s own commitment to capital project spending. For those involved in major City of Toronto capital works, this is a positive indication that the City is able to continue raising essential funding that will be necessary for existing projects and limiting the extent to which the City’s capital program may need to scaled back in the face of COVID-19 relief efforts and associated costs.
In addition to the benefit of providing critical funding, this financial tool is helpful for the City to secure debt at more competitive, sustainable rates over the long-term. Interested investors will be able to inquire about the City of Toronto debentures with their financial institutions once the issues are distributed to primary Canadian investment dealers.
Jamie Besner, Principal - firstname.lastname@example.org
Angela Drennan, Vice President - email@example.com
Tristan Downe-Dewdney, Associate - firstname.lastname@example.org
Lauren Goethel, Jr. Associate - email@example.com