Toronto Community Housing raises $200 million through debt offering to finance next phase of renewal and development activities
Toronto Community Housing announced today that it raised $200 million from the issue of long-term debentures maturing February 2040 to finance renewal and development activities in 2010 and 2011.
This new capital will be used to finance development activities, including phase two of Regent Park revitalization, developing the West Don Lands and other capital projects.
"Toronto Community Housing's primary mandate is to provide quality housing for low and moderate income households. We are committed to operating an efficient and effective business, including low vacancy rates, manageable costs for the non-profit sector and operating within our budget," said Keiko Nakamura, Acting CEO of Toronto Community Housing. "This offering will help us continue to deliver on that mandate by sustaining and revitalizing existing social housing, which in turn will improve the lives and living conditions of our residents."
In January, Standard & Poors maintained Toronto Community Housing's "AA -" investment-grade rating.
"The S&P rating is a positive accomplishment in the current economic environment and is reflective of our strong credit and financial stability," said Toronto Community Housing CFO Gordon Chu. "Our financial strength and stability makes this a sound investment for our bondholder."
This debt offering follows a similar one in 2007, when Toronto Community Housing raised $250 million in debentures. TD Securities, Scotia Capital, RBC Capital Markets and National Bank Financial acted as investment banks for the offering.
About Toronto Community Housing
Toronto Community Housing (www.torontohousing.ca) is Canada's largest social housing provider and home to more than 164,000 tenants with low and moderate incomes-about six per cent of the City of Toronto's population. Toronto Community Housing employs 1,400 staff in a broad range of jobs who deliver its mandate to provide quality housing and build great neighbourhoods. Toronto Community Housing is one of Canada's 2009 Top 100 Employers.