Nova Scotia Borrows $300 million in 10-Year Bond

The province is raising $300 million by way of a 10-year bond issue, Finance Minister Neil LeBlanc 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, and thus reduces exposure to floating debt in the event that interest rates move higher. 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 6.5 per cent. This is the first borrowing in the 2000-01 fiscal year. The province expects to borrow an additional $800 million by March 31, 2001.