Nova Scotia Raises $350 Million in Five-year Bond

The province is raising $350 million by way of five-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 reduce 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 5.675 per cent, which is the province's lowest rate in two years. This brings the province's borrowing for 2000-01 to $1.195 billion. The borrowing is used to finance the current year's deficit and to re-finance existing debt.