The provincial government, its Crown corporations and agencies meet borrowing requirements through a number of different financing programs. Borrowing is undertaken in different currencies and markets, and offered in fixed and floating rate form. This diversity reflects the diversification purposes and client needs for which funds are required.
Most Crown corporation and agency borrowing is done through the Fiscal Agency Loan program. Under this program, the provincial government borrows directly in financial markets and re-lends the funds to Crown corporations and agencies on matching terms. The borrowing and financing costs remain the responsibility of the Crown corporations and agencies except in certain cases when the province provides a contribution to pay for all or part of the debt service costs. The Fiscal Agency Loan program provides lower-cost financing due to the province’s strong credit rating and its ability to borrow at lower interest rates:
In some circumstances, Crown corporations and agencies may borrow directly from lenders; authority to borrow is provided by the government. In addition to the traditional borrowing methods discussed above, the province reviews opportunities for alternative financing (for example, via public-private partnerships), as a means of meeting the growing demand for public infrastructure. One advantage of using alternative methods is that support from taxpayer revenues can be minimized.
Corporate & Project Finance provides financial advisory services and arranger & placement services with respect to alternative procurement of capital assets, public-private partnerships and divestiture initiatives in support of the Capital Asset Management Framework.
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