The Honourable Dr. Andrew Furey, Premier of Newfoundland and Labrador, was at London Stock Exchange this morning to ring the opening bell to officially launch the province’s European borrowing program. Premier Furey was joined at this ceremony by the Honourable Siobhan Coady, Deputy Premier and Minister of Finance.
By establishing the European borrowing program and listing with London Stock Exchange, Newfoundland and Labrador has the option to issue bonds in the European capital market, in addition to its existing domestic Canadian market, to meet its borrowing requirements.
Diversifying the province’s investor base and broadening the reach to international markets provides an opportunity to continue to lower borrowing costs. This is part of government’s commitment to improve treasury management. Monies borrowed are used to pay for government programs and services and to service the existing debt.
Like all Canadian provinces, Newfoundland and Labrador funds its borrowing requirements by issuing bonds in the capital markets. These bonds are publicly traded and primarily held by a broad base of institutional investors. More information on the province’s borrowing program is available here.
Government’s strategic plan to return to balanced budgets, lower the cost of borrowing, and decrease debt includes:
- Fixing the financing of the Muskrat Falls Project through the $5.2 billion rate mitigation agreement with the federal government;
- Prudent fiscal governance, including transformation and modernization of government, strengthening the role of the Auditor General and balanced budget legislation; and,
- Responsible debt management, including effective treasury management, optimizing investment performance and establishing a Future Fund.
Quotes
“We appreciate the support we have received from the team at London Stock Exchange who understand our potential and value for European investors. Newfoundland and Labrador offers an opportunity to invest in a Canadian province with a resilient economy, limitless potential, stable government and commitment to environmental, social and prudent fiscal governance principles.”
Honourable Dr. Andrew Furey
Premier of Newfoundland and Labrador
“The program we are offering with London Stock Exchange is important to our fiscal governance strategy which includes managing debt responsibly, modernizing government processes, contributing to a future fund and introducing balanced budget legislation. We are seeing results such as stable credit ratings and net debt to GDP ratio of 37.8 per cent in 2022-23. We are continuing on a path to achieve a strong, smart, self-sufficient, sustainable Newfoundland and Labrador.”
Honourable Siobhan Coady
Deputy Premier and Minister of Finance
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Learn more
Video: Premier Furey Opens the London Stock Exchange
Improved Outlook for Province’s Credit Rating
Future Fund Act to Receive Second Reading in House of Assembly
Reduced Debt and Borrowing, Contribution to Future Fund in Strong Fiscal and Economic Update
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