City of Toronto’s second debenture of the year issued to fund capital projects

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Ontario Construction News staff writer

The City of Toronto issued a debenture last week for $335 million to help finance key capital projects. It’s the second public debenture issuance this year.

Proceeds will fund council-approved capital projects from several divisions and agencies including economic development and culture, environment and climate, shelter support and housing administration and transportation. Some projects included in this issuance are state-of-good repair, traffic congestion management, building renovations and bridge rehabilitation.

“Despite experiencing some of the most challenging market conditions in comparison to the past decade, investors continue to have confidence in Toronto’s economy and our prudent financial management,” said deputy mayor Jennifer McKelvie. “I’m pleased that proceeds from our debenture program continue to help us fund strategic infrastructure projects that ensure we can continue to help fund the strategic capital projects needed for a growing, thriving city.”

Despite sustained concerns about inflation, investor confidence in Toronto appears to be strong and demand for municipal bonds remains high. This issuance has 38 Canadian and international investors.

Toronto has one of the most extensive municipal borrowing programs in Canada and maintains an AA credit rating by S&P Global, an AA credit rating by DBRS Morningstar, and an Aa1 credit rating by Moody’s.

More information about the City’s debenture programs is available on the City’s Investor Relations webpage.

“Proceeds from the City’s second bond issuance of the year will help the city continue funding important capital projects. The funds from the bonds will ensure that we can make important investments to maintain and improve the City for present and future generations,” said councillor Gary Crawford, budget committee chair.

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