TORONTO BECOMES SECOND CANADIAN CITY TO ISSUE A GREEN BOND

Toronto’s 30-year, $300-million green bond brings a financial benefit: the yield (3.213 per cent based on a 3.20 per cent coupon) required to clear the market was a tad lower than what a traditional debenture would have cost.

The city has determined that savings of about $600,000 (in present value terms) resulted from the green financing, the proceeds of which will be used for “core and supporting infrastructure for sustainable and clean transportation.” Subway and light rail transport projects will get most of the proceeds.

Learn more at: https://www.toronto.ca/city-government/budget-finances/city-finance/investor-relations/green-debenture-program/