Government of Newfoundland and Labrador Places First Bond in European Market

The provincial government has placed a bond in the European capital market. This is the first transaction with the London Stock Exchange since the launch of the European borrowing program which provided an option to issue bonds beyond the existing domestic Canadian market.

The European borrowing program has diversified the province’s investor base, broadened the reach to international markets, and provided an opportunity to lower borrowing costs.

In this case, the placement resulted in a cost savings of approximately $450,000 or five basis points versus what may have been achieved in the domestic market.

This first transaction was placed on October 4, at a size of 75 million Canadian dollars. The yield is 3.067 per cent and is due December 4.