Credit ratings
Our credit ratings continue to be among the best municipal ratings in Canada. This makes our debentures an attractive investment in both domestic and international markets.
The Green Bond Program further supports our efforts to promote and support environmental and socially-responsible goals and objectives. It also aligns with our financing and investment activities to help advance a low-carbon, climate-resilient future.
Under the Green Bond Framework, net proceeds from Green Bonds will be used to finance Council-approved capital projects that we determine to benefit the environment.
On September 11, 2018, we issued our first green bond offering of $85 million to fund environmentally sustainable initiatives and projects, while offering investors competitive returns. Our inaugural $85 million green bond pays a 3.10% coupon interest rate and matures on September 21, 2028.
Inaugural Green Bond term sheet
- Issuer: City of Vancouver
- Credit ratings: Moody's Aaa and S&P AAA
- Amount: $85,000,000
- Settlement date: September 21, 2018
- Maturity date: September 21, 2028
- Coupon: 3.10%
- Coupon dates: March 21 and September 21
- Benchmark: Government of Canada 2.00% due June 1, 2028
- Price: $99.991
- Yield: 3.101%
- CUSIP: 921577RM6
- Comments: The City’s domestic underwriting syndicate led by CIBC World Markets Inc. and RBC Capital Markets
General Debenture Program
In the past decade, the City of Vancouver has continued to be a consistent debenture issuer. Under the Vancouver Charter, we are directed by the following regulations:
- Debt financing is used for capital infrastructure
- Voters approve all other borrowing limits except for water, sewer, and neighbourhood energy. Debt servicing is funded from annual operating budgets with annual sinking fund contributions.
We are the only municipality in British Columbia that manages our own borrowing program outside of the Municipal Finance Authority of British Columbia (MFABC).
Pursuant to City Council’s authority as set out in the Vancouver Charter, the City borrows in its own name and manages its debenture portfolio with full autonomy over the following:
- Timing, amounts, and terms and conditions of the debenture issues
- Management of the sinking funds accumulated against City of Vancouver debentures
Bank syndicate
We work closely with a group of Canadian banks and financial institutions to raise funds in the capital market. The Canadian banks and financial institutions provide advice on market conditions, support ongoing investor relationships, and provide liquidity to debt issuances.
Investor relations
