Toronto expected to issue $600 million in bonds

Toronto is expected to double its borrowing limit next year by issuing as much as $600 million in bonds, Bloomberg reports.

Rob Rossini, the deputy city manager and CFO, says the first issuance of $300 million will happen in the first six months of 2014.

The move is in response to investors who want to buy more municipal bonds. Toronto’s borrowing costs have not gone up due to the instability at city hall, as Mayor Rob Ford faces continued pressure to resign over his behaviour, including smoking crack cocaine, the city said in a statement. Standard and Poor gives Toronto a AA credit rating.

Read: How to avoid hiring a Rob Ford

Toronto city council has approved the issuance of as much as $900 million of debt every year, Bloomberg reports.

Read more here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.