Item - 2020.DB5.1

The Debenture Committee received the report (May 6, 2020) from the Chief Financial Officer and Treasurer for information.

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.