Ontario Construction News staff writer
Toronto has issued a $100 million green bond to help finance transformative climate action projects, the city announced last Tuesday (Sept. 19).
The proceeds from the bond will be used to fund council-approved capital projects addressing climate change at several city divisions and agencies, including Corporate Real Estate Management, the Toronto and Region Conservation Authority, the Toronto Transit Commission and Transportation Services. Projects funded include state of good repair, renewable thermal energy, Yonge-Bloor capacity improvements and cycling infrastructure.
The bond, which has a 20-year maturity and a coupon interest rate of 4.40 per cent, was issued on Sept. 15 and will settle on Oct. 3, 2023. It was three times oversubscribed, with a total of 29 Canadian and international investors.
“The City of Toronto continues to take bold climate action and this green bond — our sixth since we became one of the first Canadian municipalities to issue green bonds — will fund capital projects to make life better and more sustainable for Torontonians, improving our health, growing our economy, cultivating social equity and building our resilience,” Mayor John Tory. Said in a statement.
“The city continues to be a leader in sustainability, leveraging our significant capital budget to invest in our communities and take climate action now. Our green bonds are a sound financial investment and investors continue to show confidence in Toronto with their positive response to this issuance,” said Councillor Joe Cressy, chair of the city’s Environment and Infrastructure Committee.