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.
DB5.1adopted
City of Toronto Social Debenture Program
This report provides the Debenture Committee with information on the City's new Social Debenture Program. This important and innovative type of financing would allow the City of Toronto to maintain its leadership role in the area of Sustainable Finance by being the first Canadian municipal issuer of Social Debentures. Moreover, the Social Debenture Program aligns with the City's vision and strategic priorities to promote positive social outcomes. In addition, the City may achieve slightly lower borrowing costs under this program as it responds to global investor demand. The planned Social Debenture issuance in 2020 is within the Council approved multi-year debenture and temporary borrowing limit for 2019-2022. The estimated total Social Debenture issuance in 2020 is up to $100 million. City of Toronto's Social Debentures share the same financial and legal characteristics as the City's general obligation debentures issued in the past which are backed by the credit and taxing power of the City. The differentiating feature of Social Debentures is the limited and targeted use of proceeds. Under the Social Debenture Program, net proceeds from debentures will be used to fund Council approved capital projects that align with the Council adopted plans, policies, and strategies that support affordable housing, affordable basic infrastructure, access to essential services, and socioeconomic advancement and empowerment.
The Debenture Committee received the report (May 6, 2020) from the Chief Financial Officer and Treasurer for information.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. The information provided by this report be received by the Debenture Committee.
DB5.2adopted
Authority to Issue a Debenture
This report requests that the Debenture Committee approve the issuance of a 10-year sinking fund debenture in the amount of $200 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 May 1, 2020 and will be delivered to investors on May 15, 2020. The transaction is a reopening of a debenture originally issued in April 2019 and reopened once in December 2019 which brought the total outstanding to $400 million. This additional issue now brings the total outstanding to $600 million with a coupon interest rate of 2.65% and a maturity date of November 9, 2029. Details of the projects that are financed from the proceeds of this debenture are contained in Attachment A 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 A to the report (May 4, 2020) from the Chief Financial Officer and Treasurer through the issuance of a 10-year sinking fund debenture in the amount of $200 million in accordance with the terms and conditions set out in the purchase letter provided by the lead manager, National Bank Financial Inc, and entered into by the Mayor and the Chief Financial Officer and Treasurer dated May 1, 2020 (the "Purchase Letter"), and as further described in the report (May 4, 2020) from the Chief Financial Officer and Treasurer. 2. The Debenture Committee authorize 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.
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 A through the issuance of a 10-year sinking fund debenture in the amount of $200 million in accordance with the terms and conditions set out in the purchase letter provided by the lead manager, National Bank Financial Inc, and entered into by the Mayor and the Chief Financial Officer and Treasurer dated May 1, 2020 (the "Purchase Letter"), and as further described in this report. 2. Authority be granted for 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 thereto.
DB5.3adopted
Debenture Committee will adopt a general Bill and a confirming Bill.
The Debenture Committee enacted By-laws 367-2020 and 368-2020.