247.2
in net assets
336000
working members and pensioners
8.5
10 year total-fund net return
Ontario Teachers' investment funding strategy is focused on diversifying the sources of investment funding, managing the cost and maturity profile, maintaining a presence in key funding markets, and supporting the overall management of the currency exposure of our global investment program. The investment funding strategy contains both short- and long-term funding sources, which collectively diversify and mitigate risk.
About Ontario Teachers’ Finance Trust (OTFT)
OTFT issues commercial paper and term-debt that is fully, unconditionally and irrevocably guaranteed by Ontario Teachers'. OTFT primarily generates funding through fixed income products in international markets. Since its inception in 2015, OTFT has issued U.S. and Canadian dollar-denominated commercial paper in addition to U.S. dollar, Canadian dollar and EUR benchmark-sized term debt targeting international institutional investors.
OTFT issuance summary
In September 2017, OTFT issued its inaugural US$1.75 billion five-year senior unsecured notes. Since then, OTFT has issued at least one U.S. dollar benchmark notes offering per calendar year. OTFT is committed to being a regular issuer in the U.S. dollar market. OTFT further broadened into Euro, Canadian dollar and Green Bond markets in 2020 and issued its inaugural bond denominated in Pound sterling in 2021. The coupon and principal paid to investors are senior to pension liabilities.
| Issuance | Currency | Size | Maturity Date | Coupon |
|---|---|---|---|---|
| September 2019 | USD | $1.75 billion | September 12, 2024 | 1.625% |
| April 2020 | USD | $1.00 billion | April 15, 2025 | 1.375% |
| May 2020 | EUR | €1.50 billion | May 06, 2025 | 0.500% |
| September 2020 | USD | $1.50 billion | September 29, 2023 | 0.375% |
| September 2020 | USD | $1.50 billion | September 27, 2030 | 1.250% |
| October 2020 | CAD | $1.25 billion | October 19, 2027 | 1.100% |
| November 2020 Green Bond | EUR | €750 million | November 25, 2030 | 0.050% |
| April 2021 | USD | $1.50 billion | April 16, 2031 | 2.000% |
| May 2021 | EUR | €1.25 billion | May 19, 2028 | 0.100% |
| May 2021 | EUR | €1.25 billion | May 20, 2041 | 0.900% |
| September 2021 | USD | $2.00 billion | September 21, 2026 | 0.875% |
| October 2021 | GBP | £500 million | May 15, 2026 | 1.125% |
| November 2021 Green Bond | EUR | €500 million | November 24, 2051 | 0.950% |
| April 2022 | USD | $1.50 billion | April 13, 2027 | 3.000% |
| April 2022 | EUR | €1.25 billion | May 3, 2032 | 1.850% |
| October 2022 | EUR | €500 million | October 5, 2029 | 3.30% |
| November 2022 Green bond | CAD | $1.00 billion | June 02, 2032 | 4.450% |
| February 2023 Green bond | CAD | $1.00 billion | November 01, 2029 | 4.15% |
Additional information on the debt issuances can be found on the Euronext Dublin website.
Credit ratings
OTFT issuances are highly rated benefitting from the full, unconditional and irrevocable guarantee by Ontario Teachers'.
Major factors supporting the rating of Ontario Teachers' include:
- Consistently high investment returns
- Sophisticated risk culture across the organization
- Robust liquidity ensuring strong coverage by high-quality liquid assets
- Innovative pension funding levers, including flexible inflation protection mechanism
- Strong legislative and governance frameworks
- Independence from sponsors
REPORTING
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