How are IRBs different from Ontario Opportunity Bonds?
The Ontario Municipal Economic Infrastructure Financing Authority (OMEIFA) previously issued tax-exempt Ontario Opportunity Bonds to finance OMEIFA’s Municipal Loan Program. OMEIFA’s experience suggests that these kinds of bonds may not be the most efficient products to use to raise funds for a broader infrastructure loan program. Taxable IRBs are a more efficient financial instrument. They maintain a link among investors and the investments in Ontario communities, but also impose accountability and discipline on borrowers. Infrastructure Ontario will continue to fully honour all OMEIFA commitments on outstanding Ontario Opportunity Bonds, and the government will continue the tax-exempt treatment of interest earned on these bonds until their maturity.
