Nova Scotia Reopens $250 million in 10-Year Bond

Nova Scotia has made another move to reduce exposure to floating interest rate risk. Finance Minister Don Downe announced that the province has issued $250 million in term debt through a reopening of a long-term bond issued in January of this year.

The original issue also raised $250 million. Both offerings are part of the province's current effort to reduce dependence upon short-term money market financing.

With the reopening, a total of $500 million in Canadian funds has now been converted to a fixed 10-year term. The move reduces the province's exposure in the event interest rates rise. The coupon rate is 5.4 per cent. After taking into account issuance costs, the effective borrowing cost to the province is about 5.68 per cent.

The funds will be used as part of the province's general debt refinancing program.