TransLink raises $130-million in latest bond issue

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SkyTrain Expo Line / Shutterstock

Metro Vancouver’s transportation authority has announced that it has raised $130-million through its sixth bond issue.

TransLink is the only transportation authority in Canada to raise funds directly through safe and low-risk Canadian debt capital markets. Since 2010, more than $1-billion has been raised through bonds to fund the authority’s roads and capital projects.

“The demand for our bonds reflects TransLink’s solid financial position, and it shows strong investor confidence in the organization,” said TransLink CEO Ian Jarvis in a statement. “This access to capital helps keep Metro Vancouver’s transit and road network moving and contributes to the maintenance of transportation assets so they serve the region for years to come.”

During issues in 2010 and 2011, the authority raised a total of $500-million through a 10-year bond at 3.88 per cent and a 30-year bond at 4.7 per cent. The following year in 2012, it took advantage of the historic low long-term interest rate market by issuing a 40-year bond. By February 2012, $100-million was raised through this bond and it was reopened in July 2012 for an additional $150-million.

In late 2013, TransLink secured a 30.5-year term bond with an all-in rate of 4.495 per cent, raising $150-million.

Before the most recent bond issue, Moody’s Investors Service and Dominion Bond Rating Service reaffirmed TransLink’s Aa2 and AA stable credit ratings.

Over the next decade, TransLink will need to raise billions more in funding for its share of covering the cost of major capital projects in the region including the Pattullo Bridge replacement, the UBC-Broadway subway and Surrey LRT.

These projects are part of the Mayors’ Council $7.5-billion plan for Metro Vancouver’s roads and public transit system, however, funding is dependent on a successful ‘Yes’ result in next year’s regional referendum on public transit.

 

Feature Image: SkyTrain via Shutterstock

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