Province Issues $250 Million in Bond Market

The Province of Nova Scotia has issued $250 million in 10-year bonds in the domestic market at a very attractive interest rate, Finance Minister Don Downe announced today.

Tuesday's issue in Canadian dollars is part of the province's continuing effort to reduce foreign exchange exposure. The proceeds will be used to pay down short-term debt as it comes due. The interest rate was 5.48 per cent, just 43 basis points above the comparable Government of Canada rate.

"An interest rate of 5.48 per cent is extremely favourable and shows the marketplace continues to have confidence in Nova Scotia," said Mr. Downe. Quebec went to the bond market Tuesday as well and will pay interest costs roughly 10 basis points higher than that obtained by Nova Scotia.

The debenture issue reduces the province's exposure to short-term interest rates at a time of continued turbulence in financial markets.