The City of Toronto has announced that it has issued a new green bond for $300 million to help finance key capital climate action projects. This is the City’s fifth debenture issuance this year with a low all-in cost of 4.472 per cent.
This green bond issue will aim to help fund transformative climate action and was issued on 28th November and will settle on 14th December. This issue highlights the fifth time the City has been issued a green bond since its initial green bond offering in 2018.
The revenue made will be used to fund approved Transportation Services, TTC and Waterfront Revitalisation capital projects to address climate change.
The city has said that the money will be used to fund projects such as cycling infrastructure, subway and streetcar electric rail infrastructure and Port Lands flood protection.
The issuance has had a total of 34 investors from Canada and the United States and has been said to be more than 2.1 times oversubscribed.
“We continue our leadership in sustainable economics – it is simply the right thing to do and the smart thing to do with the public dollars that we are spending. The City’s successful green bond program offers sound investment opportunities while funding our sustained climate action.” said Mayor John Tory.
Toronto is said to have 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, says the press release.
“Our green bonds are so strong that we continue to attract investors in an increasingly volatile market. This month’s issue was well received, demonstrating investor confidence in both Toronto’s economy and the City’s responsible fiscal management throughout this pandemic.” commented Councillor Gary Crawford (Scarborough Southwest), Budget Committee Chair