Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Toronto Plans C$300 Million Bonds in First Half of 2014

Nov. 21 (Bloomberg) -- Toronto will probably double borrowing to C$600 million ($570 million) in 2014 from this year, with half the issuance coming in the first six months, according to the city’s chief financial officer.

“Investors keep calling us asking us when are we going to do another debenture issue because they want to buy our bonds,” Rob Rossini, deputy city manager and CFO, said in an interview. “There’s strong demand for municipal bonds in general and strong demand for our bonds as well.”

The city council has approved as much as C$900 million of debt issuance for each year of the current four year term. The city also issued C$600 million in 2012.

Toronto’s borrowing costs have not increased since Mayor Rob Ford came under pressure to resign last week after admitting to smoking crack cocaine, the city said today in a statement.

The average extra interest rate for Toronto bonds increased four basis points, or 0.04 percentage point, to 94 basis points more than federal government benchmarks from Nov. 13 to Nov. 18, according to the Bank of America Merrill Lynch Canadian Provincial & Municipal Index. The city’s average spread fell to 89 basis points more than federal benchmarks as of the end of trading yesterday, according to the index.

Rossini said investors are not concerned with the turmoil at city hall.

“Our fiscal agents and our credit-rating agencies have said none of this impairs our ability to repay our debt,” Rossini said. “We are a very, very strong, high-quality credit rating.”

Moody’s Investors Service rates Toronto’s debt Aa1, while Standard & Poor’s gives the city a AA rating.

To contact the reporter on this story: Ari Altstedter in Toronto at aaltstedter@bloomberg.net

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.