BMO recognized by Environmental Finance’s 2021 Bond Awards
BMO was one of several organizations recognized today by Environmental Finance’s 2021 Bond Awards in the category of Lead Manager of the Year, Social Bonds – Local Authority/Municipality category.
BMO was recognized for its work on the inaugural Social Bond issued under the new City of Toronto Social Debenture Framework in June 2020 — the first-ever Social Bond from a Canadian Government issuer. According to data from the International Capital Market Association (ICMA), the City of Toronto was only the third local government globally to issue a Social Bond in accordance with the ICMA Social Bond Principles.
The City of Toronto Social Bond, issued under Toronto’s Social Debenture Framework, is part of a program to promote positive socioeconomic outcomes, from affordable housing and access to essential infrastructure and services, to socioeconomic advancement and empowerment.
“We’re pleased about the recognition the City of Toronto Social Bond has received from Environmental Finance,” said Jonathan Hackett, Head, BMO Sustainable Finance. “Government Social Bond issuances are an emerging and increasingly important area of sustainable financing and BMO is excited to be a leader in this growing space — one that so closely aligns with our Purpose to grow the good.”
“The pandemic has put pre-existing systemic socio-economic inequalities and poverty into the spotlight. We need to address these issues at the forefront of our thinking,” said Heather Taylor, Chief Financial Officer and Treasurer, City of Toronto. “The City of Toronto’s $100 million social bond proceeds have helped fund critical strategic initiatives that include shelters and affordable housing.”
The $100 million bond issue, with a 10-year maturity, will mature on December 2, 2030. Investors paid a price of $99.98 to yield 1.602 per cent, which is the lowest borrowing cost the City of Toronto has ever secured. The proceeds from this issuance will be used to help fund Shelter, Support and Housing Administration’s George Street Revitalization and 1,000 New Shelter Beds projects. More information about the City’s Social Debenture Program is available on the City’s website.