Item - 2025.DB12.1

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 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 RBC Dominion Securities Inc., and entered into by the Mayor and the Chief Financial Officer and Treasurer dated September 9, 2025 (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.

This report requests that the Debenture Committee approve the issuance of a 10-year sinking fund green debenture in the amount of $200 million and enact the necessary borrowing by-law to give effect to this debenture issuance. A green debenture is a type of fixed-income security where the proceeds are earmarked to finance projects that provide environmental benefits. The debenture was syndicated and sold in the domestic and global capital markets on September 9, 2025, and will be delivered to investors on September 25, 2025.

All costs related to this debenture issue are budgeted for in the 2025 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 2025 debt charge associated with this debenture issue is $26.2 million is included in the City’s 2025 Tax-Supported Operating Budget in the Non-Program Corporate and Capital Financing account.

The annual debt charge, which includes sinking fund deposit, interest payments and amortization of price discount, will be approximately $24.3 million from 2026 to 2033, and $25 million in 2034.