Debenture Committee
The full agenda, as filed
All 3 items in the clerk’s order. Each carries the city’s own words: the staff recommendation, what the body decided, and its status. Nothing below is written by us.
DB15.1adopted
Authority to Issue a Debenture
This report requests that the Debenture Committee approve the issuance of a 30-year sinking fund conventional debenture in the amount of $450 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 March 31, 2026, and will be delivered to investors on April 17, 2026. All costs related to this debenture issue are budgeted for in the 2026 Tax-Supported Operating Budget. Details of the projects that are financed from the proceeds of this debenture are contained in Attachment 1 of this report.
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 (March 31, 2026) through the issuance of a 30-year sinking fund debenture in the amount of $450 million in accordance with the terms and conditions set out in the purchase letter provided by the lead manager CIBC, and entered into by the Mayor and the Chief Financial Officer and Treasurer dated April 17, 2026 (the "Purchase Letter"), and as further described in this report. 2. The Debenture Committee authorize the introduction of the necessary Bill 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 thereto.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. The Debenture Committee approve the provision of long-term financing of the capital projects listed in Attachment 1 to the report (March 31, 2026) through the issuance of a 30-year sinking fund debenture in the amount of $450 million in accordance with the terms and conditions set out in the purchase letter provided by the lead manager CIBC, and entered into by the Mayor and the Chief Financial Officer and Treasurer dated April 17, 2026 (the "Purchase Letter"), and as further described in this report. 2. The Debenture Committee authorize the introduction of the necessary Bill 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 thereto.
DB15.2adopted
City of Toronto Sustainable Debenture Program
This report provides the Debenture Committee with information on the City's new Sustainable Debenture Program. This new program consolidates, updates and builds upon the City's previously established Green Debenture Framework (2018) and Social Debenture Framework (2020) and enables the City to issue Green, Social, or Sustainability Debentures. In addition, under this program, the City may be able to achieve slightly lower borrowing costs. To establish this new program, a Sustainable Debenture Framework (Framework) provides flexibility to finance eligible capital projects that deliver environmental and/or social benefits, while continuing to align the City's debt program with evolving global sustainable finance standards and investor demand. The Framework supports the City's leadership in sustainable finance and reinforces its commitment to transparency, accountability, and impact reporting. Attachment 1 provides the new City of Toronto Sustainable Debenture Framework. In keeping with best practices, and to support transparency and market credibility, the City engaged Moody's Ratings (Moody's) to provide an independent Second-Party Opinion (SPO) on the Sustainable Debenture Framework (Attachment 2). Moody's assigned the City's Framework a Sustainability Quality Score of SQS1(Excellent), the highest score available. At the present time, there are no other Canadian sustainable debt issuers that have been assessed at this high level. City of Toronto's sustainable debentures will share the same financial and legal characteristics as other City's general obligation debentures issued in the past which are backed by the credit and taxing power of the City. The main difference is the limitation on the use of proceeds. The Framework does not change the City's overall debt authority or borrowing limits, which continue to be governed by Council-approved multi-year debenture and temporary borrowing limits. Any issuance under the Framework will be subject to existing Council authorities, policies, and reporting requirements.
The Debenture Committee adopted the following: 1. The information provided by the report (March 23, 2026) be received by the Debenture Committee.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. The information provided by this report (March 23, 2026) be received by the Debenture Committee.
DB15.3adopted
The Debenture Committee will introduce a general Bill and a confirming Bill.
The Debenture Committee passed By-laws 327-2026 and 328-2026, subject to Section 226.9 of the City of Toronto Act, 2006.