Province Refinances US Debt

The Department of Finance has refinanced $375 million US in debt. The new floating rate issue replaces an existing $280 million US floating rate note at a lower rate of interest. The remaining $95 million refinances existing US dollar short-term notes.

The new issue was financed in the Euro market and is due in May, 2001, with the option to call the note in May of 2000. The interest rate is tied to the London Interbank Offered Rate (LIBOR). The refinancing transaction results in no change in the foreign debt exposure for the province.

Finance Minister Don Downe said, "This change is part of our strategy to take advantage of market opportunities to refinance our debt in a prudent manner."