The Ontario Pension Board has completed its largest bond issue to date, a $750-million, 10-year bond offering.
More than 66 investors took part in the offering, including 19 new buyers.
“Since our first bond offering in 2012, investor interest has continued to increase with each offering,” said Mark Fuller, OPB’s president and chief executive officer, in a news release. “This demonstrates the market’s confidence in OPB and highlights the growing investor appetite for OPB’s credit.”
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According to the release, the Ontario Pension Board’s bond financing strategy was put in place to help it enhance its real estate returns by taking advantage of historically low interest rates. Since OPB’s real estate generates more cash than it needs to cover the interest payments on the bonds, it helps the pension fund enhance its returns and contributes to improving its funded status over the long term, OPB noted.
This latest bond offering maintained a AA+ credit rating from Standard and Poor’s credit rating agency. OPB also received a AA rating from Dominion Bond Rating Service.
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