July 18, 2018
City of Toronto issues its first-ever green bond
The City of Toronto today issued an inaugural green bond offering of $300 million. Toronto is one of the first municipalities in Canada to establish a Green Debenture Program with net proceeds to finance capital projects that mitigate, and adapt to, the effects of climate change.
“This is one more way the City of Toronto is demonstrating our commitment to being a clean, green and sustainable city,” said Mayor John Tory. “The funds from the green bonds will ensure that we can make important investments to maintain and improve the health of the environment for present and future generations.”
This $300 million issue with a 30-year maturity and a coupon interest rate of 3.20 per cent, will mature on August 1, 2048 and settle on August 1, 2018. This represents the lowest borrowing cost the City of Toronto has been able to achieve for a 30-year term.
“The low cost of borrowing will help us to finance more key capital projects that support the City’s environmental goals, improve our health and grow our economy,” said Councillor Gary Crawford (Ward 36 Scarborough Southwest), Chair of the City’s Budget Committee.
“It’s expected that domestic and global emerging interest in environmentally and socially responsible investments will allow the City to be a regular issuer of green bonds,” said Joe Farag, Interim Chief Financial Officer. “The proceeds from the City’s inaugural green bond will be used exclusively to finance capital projects for sustainable clean public transit infrastructure.”
Eligible projects are 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.
More information about the City’s Green Debenture Program is available at https://www.toronto.ca/city-government/budget-finances/city-finance/investor-relations/.
Toronto is Canada’s largest city, the fourth largest in North America, and home to a diverse population of about 2.8 million people. It is a global centre for business, finance, arts and culture and is consistently ranked one of the world’s most livable cities. For information on non-emergency City services and programs, Toronto residents, businesses and visitors can visit http://www.toronto.ca, call 311, 24 hours a day, 7 days a week, or follow us on Twitter at http://www.twitter.com/TorontoComms, on Instagram at http://www.instagram.com/cityofto or on Facebook at http://www.facebook.com/cityofto.
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Media contact: Paula Chung, Strategic Communications, 416-392-1649, Paula.Chung@toronto.ca