The City of Toronto today issued an inaugural social bond offering of $100 million. Toronto is the first government in Canada to establish a Social Debenture Program, furthering its leadership in sustainable finance, and promoting positive and equitable socioeconomic outcomes.
This $100 million bond issue with a 10-year maturity, will mature on December 2, 2030. Investors paid a price of $99.98 to yield 1.602 per cent, which is the lowest borrowing cost the City of Toronto has ever secured.
The proceeds from this issuance will be used to help fund Shelter, Support and Housing Administration’s George Street Revitalization project and 1,000 New Shelter Beds projects.
The Social Debenture Program demonstrates the City’s commitment to advance positive social action and sustainability for all Torontonians. Eligible projects are capital projects for various social initiatives, including:
The Social Debenture Framework was verified by Sustainalytics, a global leader in environmental, social and governance research and ratings. This verification ensures the City’s framework aligns with the International Capital Markets Association Social Bond Principles.
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.
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 Social Debenture Program is available on the City’s website.
Quotes:
“In the midst of a global pandemic, this $100 million issuance ensures the City can continue investing in essential social services, affordable housing and critical infrastructure. The first of its kind in Canada, the Social Debenture program demonstrates our commitment to equitable social advancements for all Torontonians. The success of this social bond offering shows the continued strong market confidence in the City of Toronto.”
– Mayor John Tory
“Although COVID-19 has had a serious economic impact across the globe, capital markets are optimistically focused on re-opening economies and easing lockdown restrictions. Investor demand remains strong and the bond market continues to be favorable for the City to issue debentures. The low cost of borrowing will help us fund more key capital projects that align with the City’s social priorities.”
– Councillor Gary Crawford (Ward 20 Scarborough-Southwest), Budget Committee Chair
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 toronto.ca or follow us on Twitter at twitter.com/CityofToronto, on Instagram at instagram.com/cityofto or on Facebook at facebook.com/cityofto.