B.C. Finance Minister Kevin Falcon is in continental Europe and London this week to brief investors on B.C. as a safe harbour for investment encourage participation in major capital projects and private sector opportunities that will drive job creation in the decade ahead.

B.C. global bond issues are highly valued by international investors. B.C.'s strong fundamentals enable it to borrow at significant savings. European investors facing uncertainty at home received further assurance of the Province's stability when Standard and Poor's reconfirmed B.C.'s AAA credit rating in late August.

Falcon will use these meetings reinforce B.C.'s credit credentials to European investors so the Province continues to capture favourable access to the capital markets and savings for taxpayers.

Falcon's itinerary also includes meetings that will support B.C.'s 'Canada Starts Here: The BC Jobs Plan'. B.C. has a tradition of attracting European investment to major infrastructure projects that create jobs around the province.

The minister and staff have meetings in Paris, Frankfurt, Munich, Zurich and London between Oct. 3 and 10.

Quick Facts:

• B.C.'s strong fundamentals enable it to borrow at significant savings. The Province currently borrows at 30 to 35 basis points lower than Ontario in the US dollar market.
• The trip builds on a very successful US $750 million 10-year bond offering on Sept. 15, 2011. It was British Columbia's second fixed-rate US$ benchmark global offering of 2011 and reflected the strong favourable response to the Province's AAA credit rating and reputation for sound fiscal management and economic performance.
• B.C. is one of only a few provinces able to issue in U.S. dollars at a rate that generates savings on debt servicing costs when swapped back into Canadian funds (compared to its domestic cost of borrowing).
• On the 2011 global bonds (totalling US $2.25 billion), B.C. saved about $9 million over the five- and 10-year terms of the bonds.
  
• Diversification of the Province's investor base generates debt service cost savings for taxpayers and provides access to liquidity for financing important government programs which is especially difficult in fragile capital markets.
• Based on our past global bond offerings, the take-up by European investors could represent up to 25 per cent of a provincial issue.
• The Province has about $7 billion more to borrow in this fiscal 2011-12, of which about $5.3 billion will be long term financing. A date for the next global bond offering has not been set.
• Falcon plans to meet with investors interested in B.C. as a place for private sector investment, including Credit Suisse - a leading international financial services company that recently announced plans to invest in a new $200 million Vancouver office tower, which is expected to exceed the LEED Gold standard.
• In reconfirming B.C.'s AAA credit rating, Standard and Poor's noted the Province has the solid revenue and expenditure flexibility necessary to achieve a balanced budget by 2013-14 and to manage its tax-supported debt burden.

Contact:

Jamie Edwardson
Communications Manager
Ministry of Finance
250 356-9872