Toronto issues $100M green bond for climate-action projects
The City of Toronto has issued a green bond worth $100 million to help finance climate-action projects.
The transaction is a reopening of the green bond originally issued in November 2022 and brings the total to $400 million.
This marks the sixth time the city has issued a green bond since its initial offering in 2018 and the third bond issued by the city this year.
This green bond, with a 20-year maturity and a coupon interest rate of 4.40 per cent, will mature on December 14, 2042. It was issued on September 15 and will settle on October 3, 2023.
“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,” said Mayor Olivia Chow.
The city will use the proceeds from the bond to finance capital projects addressing climate change at several city divisions and agencies such as corporate real estate management, the Toronto & 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.
Toronto city council has adopted an ambitious strategy to reduce community-wide greenhouse gas emissions to net zero by 2040, one of the most ambitious in North America.
The green bond program is one of several initiatives the city is leading on as part of its TransformTO Net Zero Strategy.