News Release
August 24, 2020

The City of Toronto has issued a new debenture to help finance capital expenditures from 10 different City divisions and agencies. This is the City’s third debenture issuance this year and marks the lowest ever 20-year cost of funding for the City with an all-in cost of 2.218 per cent.

This $300 million conventional bond issue, with a 20-year maturity and a coupon interest rate of 2.15 per cent, will mature on August 25, 2040. It was issued August 11 and will settle on August 25, 2020.

This issuance has a total of 41 buyers but was oversubscribed by nearly double. This demonstrates the confidence investors have in the City of Toronto and the local economy. Although COVID-19 has had a significant economic impact across the globe, capital markets are optimistically focused on rebuilding economies. Investor demand remains strong and the bond market continues to be favorable for the City to issue debentures.

The proceeds from this issuance will be used to help fund previously approved capital expenditures from several City divisions and agencies, including Shelter, Support & Housing Administration, Transportation Services, Toronto Public Library and Senior Services and Long-Term Care.

Toronto 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. 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 of Toronto’s debentures.

More information about the City’s Debenture Programs is available at

The Report to Debenture Committee is available at


“Even in the midst of a global pandemic, an increasing number of investors are looking for stable and socially responsible investment opportunities. The City is happy to partner with investors to deliver tangible, sustainable and financially responsible outcomes. The low cost of borrowing will help us finance more key capital projects that support the City’s recovery and rebuild efforts.”
– Mayor John Tory

“Expressions of interest were almost double for the $300 million sold. The success of this deal is a positive indication how investors feel about the City of Toronto. The funds from the bonds will ensure that we can make important investments to maintain and improve the City for present and future generations.”
– Councillor Gary Crawford (Ward 20 Scarborough-Southwest), Budget Committee Chair

“As much as the markets are vulnerable at the moment due to the economic impacts of COVID-19, the City had a very strong placement. This speaks strongly to the credibility of the City and the confidence investors have in us as an organization.”
– Heather Taylor, Chief Financial Officer and Treasurer

Toronto is home to more than 2.9 million people whose diversity and experiences make this great city Canada’s leading economic engine and one of the world’s most diverse and livable cities. As the fourth largest city in North America, Toronto is a global leader in technology, finance, film, music, culture and innovation, and consistently places at the top of international rankings due to investments championed by its government, residents and businesses. For more information visit the City’s website or follow us on Twitter, Instagram or Facebook.

Media Relations