Nova Scotia Borrows $300 million in Five-Year Bond

The province is raising $300 million by way of a five-year bond, acting Finance Minister Michael Baker announced today.

The money will be used to finance government operations and business enterprises. The new financing will increase the amount of fixed-term debt held by the province, resulting in reduced exposure to floating debt in the event of increased interest rates. The issue was sold in the Canadian market and is in Canadian dollars.

After taking into account issuance costs and discounts, the effective borrowing cost to the province is about 6.57 per cent. The province's 1999-2000 borrowing program was completed in February. This issue is pre-borrowing for the 2000-01 fiscal year.

The settlement date for the bonds is March 15.