Monday, June 24, 2024

The second year-end debenture issued by the City of Toronto to support strategic capital projects

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the City of Toronto issued its debenture for $335 million to help finance key capital projects This is the Citys second public debenture issuance this year

The City of Toronto issued a $335 million debenture on June 21 to assist in financing important capital projects. The City has issued two public debentures this year.

The 10-year maturity date of this conventional bond issue is July 11, 2033, with an all-in cost of 4.329% and a coupon interest rate of 4.25%.

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The returns from this issuance will finance Gathering endorsed capital tasks from a few City divisions and organizations like Monetary Turn of events and Culture, Corporate Land The board, Climate and Environment, Sanctuary Backing and Lodging Organization, Toronto Public Library and Transportation Administrations. This issue includes the following projects: maintenance in good condition, management of traffic congestion, renovations to buildings, and rehabilitation of bridges.

Investor confidence in the City of Toronto and the economy of Toronto continues to be strong, and demand for municipal bonds continues to be high despite persistent inflationary concerns. 38 Canadian and international investors participated in this issuance, which was extremely well received.

Toronto’s municipal borrowing program is one of the most extensive in Canada. It regularly issues sinking fund debentures and is a public Canadian debt market issuer. Initially, several Canadian investment dealers distribute and trade debenture issues. Retail investors can inquire about investing in the City’s debentures by contacting their banks.

S&P Global has given The City an AA credit rating, DBRS Morningstar has given it an AA credit rating, and Moody’s has given it an Aa1 credit rating. These ratings are a reflection of the City’s prudent financial management throughout the pandemic, the prior financial support it received from other branches of government, and Toronto’s extensive and diverse economy, all of which have contributed to the City’s ability to maintain its fiscal performance over the past three years.

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