Canadian transit operator Societe de Transport de Montreal (STM) is planning to borrow over C$1.2bn (US$1.19bn) a year over the next few years to revive its ageing subway network.
The move is part of a C$11.9bn (US$11.8bn) investment programme to modernise the subway network and expand its service to meet the 40% anticipated rise in ridership within the next ten years.
The agency is looking to borrow about C$300m (US$298.9m) by the end of the year, including issuing a 30-year bond to invest in new subway cars.
It intends to raise at least C$250m (US$249m) three or four times annually starting next year, including C$100m (US$99m) through banks and C$500m (US$498m) by issuing commercial paper to meet short-term liquidity needs.
The Canadian Government is offering subsidies for about half of STM's investments in station upgrades and will subsidise 75% of STM's investments in the subway network, according to Bloomberg.
