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Toronto, Jul 19 (Canadian-Media): The City of Toronto, one of the first municipalities in Canada to establish a Green Debenture Program, today issued an inaugural green bond offering of $300 million, media reports said.
Green Debenture Program. Courtesy of City of Toronto
The net proceeds of this program would reportedly go towards financing capital projects that mitigate, and adapt to, the effects of climate change.
"This is one more way the City of Toronto is demonstrating our commitment to being a clean, green and sustainable city," said Mayor John Tory. "The funds from the green bonds will ensure that we can make important investments to maintain and improve the health of the environment for present and future generations."
The maturation of this $300 million issue with a 30-year maturity and a coupon interest rate of 3.20 percent -- lowest borrowing cost the City of Toronto for a 30-year term -- will take place on August 1, 2048 and settle on August 1, 2018.
"The low cost of borrowing will help us to finance more key capital projects that support the City's environmental goals, improve our health and grow our economy," said Councillor Gary Crawford (Ward 36 Scarborough Southwest), Chair of the City's Budget Committee.
"It's expected that domestic and global emerging interest in environmentally and socially responsible investments will allow the City to be a regular issuer of green bonds," said Joe Farag, Interim Chief Financial Officer. "The proceeds from the City's inaugural green bond will be used exclusively to finance capital projects for sustainable clean public transit infrastructure."
Eligible projects are capital projects that meet the City’s environmental objectives incluie mitigation and adaptation to the effects of climate change; abatement and avoidance of Green House Gas (GHG) emissions; resource recovery and a hierarchical approach to waste management, and air, water and soil pollution prevention and control.
The primary greenhouse gases in Earth's atmosphere are reportedly water vapor, carbon dioxide, methane, nitrous oxide, and ozone.
Reporting by Asha Bajaj)