Item - 2020.DB8.1
Tracking Status
- This item was considered by Debenture Committee on November 6, 2020 and was adopted without amendment.
- See also By-law 971-2020
DB8.1 - Authority to Issue a Debenture
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Decision
The Debenture Committee adopted the following:
1. The Debenture Committee approve the provision of long-term financing of the capital projects listed in Attachment 1 to the report (October 29, 2020) from the Chief Financial Officer and Treasurer through the issuance of a 30-year sinking fund debenture in the amount of $250 million in accordance with the terms and conditions set out in the purchase letter provided by the lead manager, RBC Dominion Securities Inc., and entered into by the Mayor and the Chief Financial Officer and Treasurer dated October 26, 2020 (the "Purchase Letter"), and as further described in the report (October 29, 2020) from the Chief Financial Officer and Treasurer.
2. The Debenture Committee authorized the introduction of the necessary Bill to the Debenture Committee to authorize the issuance of debentures.
3. The Debenture Committee authorize the appropriate City of Toronto Officials to take the necessary actions to give effect to the Committee's decision.
Origin
Summary
This report requests that the Debenture Committee approve the issuance of a 30-year sinking fund debenture in the amount of $250 million and enact the necessary borrowing by-law to give effect to this debenture issuance. The debenture was syndicated and sold in the domestic and global capital markets on October 26, 2020 and will be delivered to investors on November 9, 2020.
The transaction is a reopening of a debenture originally issued in November 2019. This additional issue now brings the total outstanding to $600 million with a coupon interest rate of 2.80% and a maturity date of November 22, 2049.
Details of the projects that are financed from the proceeds of this debenture are contained in Attachment 1 of this report.
Background Information
https://www.toronto.ca/legdocs/mmis/2020/db/bgrd/backgroundfile-157959.pdf