March 11, 2011Debt Issuance Committee(DEBT) Minutes
Page Content:

1. Declarations of Conflicts of Interest
3. Approval of Agenda
3. Reports
  a) Terms of Debt Issue (Oral)
4. By-laws
5. Other Business
6. Confirming By-law
7. Adjournment


The Debt Issuance Committee met on Friday, March 11, 2011, at 11:15 a.m. in the Council Chamber, Regional Administrative Headquarters, Suite A, 10 Peel Centre Drive, Brampton.

Members Present:
E. Adams, Regional Councillor, Chair of Management Section; E. Kolb, Regional Chair; D. Szwarc, Chief Administrative Officer; N. Trim, Chief Financial Officer and Commissioner of Corporate Services
Members Absent:


Also Present:

P. O’Connor, Regional Solicitor and Director, Legal and Risk Management; D. Gates, Senior Legal Counsel, D. Bingham, Treasurer and Director, Corporate Finance; P. Pohl, Senior Treasury and Portfolio Manager;
C. Reid, Regional Clerk; A. Macintyre, Committee Clerk; H. West, Legislative Specialist


* See text for arrivals
¨See text for departures

Chaired by Regional Chair Kolb.



Moved by E. Adams;
Seconded by N. Trim;

That the agenda for the March 11, 2011, Debt Issuance Committee meeting, be approved.

Carried 2011-222


a) Terms of Debt Issue (Oral)
      Presentation by David Bingham, Treasurer and Director of Corporate Finance, and Paul Pohl, Senior Treasury and Portfolio Manager, Region of Peel

Received 2011-223

See also Resolution 2011-224

David Bingham, Treasurer and Director of Finance provided an overview of the reopening of the June, 2040 debenture issue which will provide an additional $200M issue at a rate of 5.1 per cent. He noted that the interest rates have dropped since last year’s issuance allowing the issue to be sold at a premium to investors with a yield of 4.97 per cent. The issue yield/price is based off a series of rates: the Canada long term bond rates and the Canada 30 year interest rate curve; the Ontario premium rate and finally the Peel premium rate which is lower today than June, 2010. The Peel premium rate had a 40 basis point spread in June, 2010 and now has been reduced to 33 basis points over the Ontario rate, as a result of positive investor relations.

Councillor Adams asked for a comparison with other municipalities who have incurred debt. David Bingham responded that the Region of York is issuing a 10 year plus 10 year bond which differs from the Region of Peel as the Region locked in at a low interest rate over a 30 year period. He noted that the City of Toronto has issued a debenture over 30 years with a 35 basis point spread.

Regional Chair Kolb inquired if the Region of Peel could opt to incur a $300M debenture issue at 33 points. David Bingham responded that if the amount of the issue increases there is a chance that the point spread may widen with a higher yield.

Councillor Adams inquired if there is a benefit for the City of Mississauga to share a debenture with the Region of Peel. David Bingham responded that if the lower tier municipalities are seeking a debenture issue, the municipality must go through the Region of Peel for issuance of a debenture. He further stated that the debenture is issued in the Region of Peel’s name only and therefore, the investor identifies the issue with the Region of Peel.


Three Readings:

By-law 45-2011: To authorize the borrowing upon sinking fund debentures in the aggregate principal amount of $200,000,000 for the capital works of The Regional Municipality of Peel.

Moved by N. Trim,
Seconded by D. Szwarc;

That the by-law listed on the Debt Issuance Committee agenda, being By-law 45-2011, be given the required number of readings, taken as read, signed by the Regional Chair and the Regional Clerk, and the Corporate Seal be affixed thereto.

Carried 2011-224

See also Resolution 2011-223

- Nil


Moved by N. Trim,
Seconded by D. Szwarc;

That By-law 46-2011 to confirm the proceedings of the Debt Issuance Committee at its meeting held on March 11, 2011, and to authorize the execution of documents in accordance with the Region's by-laws relating thereto, be given the required number of readings, taken as read, signed by the Regional Chair and the Regional Clerk and the Corporate Seal affixed thereto.

Carried 2011-225


The meeting adjourned at 11:31 a.m.



C. Reid
Regional Clerk

E. Kolb
Regional Chair