BEIJING, CHINA -The Province of British Columbia, Canada, is the first foreign government to issue bonds into the Chinese Renminbi (CNH) market, opening doors to new investors and raising British Columbia's profile in the Asia Pacific, British Columbia Finance Minister Michael de Jong announced today.

The issue of the one-year-term bond priced at 2.25 per cent raised 2.5 billion RMB, or about $428 million Canadian (1CAD : 5.8411 RMB), is the largest CNH bond by a foreign issuer to date. The Province immediately reinvested the proceeds in a matching and secure CNH investment, resulting in a positive return and protecting against foreign exchange risk.

The Province's CNH issue received a positive response from investors around the globe. Investors showed a strong appetite for the bond, and the issue was quickly over-subscribed. Nearly 60 per cent of the issue was bought by investors from Asia and 40 per cent by U.S. investors. Central banks and official institutions bought 62 per cent of the issue, with the remainder bought by private sector funds.

As one of the few AAA-rated issuers in the CNH market, the government expected B.C. bonds would be attractive to investors looking for a safe place to invest. Global demand for the Province's debt issues has increased in recent years, due in part to B.C.'s stable economic and fiscal performance compared to the U.S. and much of Europe.

The Province of B.C. started actively investigating the CNH market last year as a means to diversify the government's investor base, access new sources of global liquidity, and increase financial and economic ties with China and the Asia Pacific.

Issuing RMB-denominated bonds is a statement of confidence by British Columbia in the importance and global emergence of China's Renminbi, and reflects the provincial government's desire to promote stronger relations between China, B.C., and Canada.

Internationalization of the RMB also opens new business opportunities for financial institutions in B.C. in trade finance and wealth management, as well as further development of the province's international financial center.

While in Beijing, de Jong is meeting with key Chinese government representatives, investment executives and business executives to discuss how the internationalization of the RMB and B.C.'s participation in the market could benefit financial, economic, trade and tourism ties between China, British Columbia and Canada.

The minister's meetings also help prepare the way for an upcoming visit by British Columbia Premier Christy Clark, who begins a 13-day trade mission starting in Beijing on Nov. 21, 2013. The Premier's mission will advance liquefied natural gas (LNG) development opportunities and promote the British Columbia as a stable and attractive destination for trade and investment, including the establishment of Asian corporations' North American headquarters in B.C.

The minister also will discuss the progress British Columbia has made toward an internationally competitive liquefied natural gas (LNG) industry in the province. There are currently more than 10 proposed LNG projects in B.C., three of which already have approved export licences. Since last year, companies have invested more than $6 billion in B.C. to acquire upstream natural-gas assets and secure the development of pipelines and LNG plants in B.C.

Quotes:

Minister of Finance Michael de Jong -

"Our entry into the Renminbi market is an important signal that British Columbia continues to diversify and internationalize our investor base for B.C. bonds and is building awareness of B.C. as a safe haven for investment in this important market."

"We believe the Renminbi market is poised to become one of the most important capital markets in the world, supporting stronger commercial ties between countries and positive economic growth. British Columbia offers a triple-A credit rating, making us an attractive candidate for investment."

"This is a significant move to help build stronger relations between China, and British Columbia, and Canada. Entering the CNH market demonstrates our commitment to a relationship with mutual benefits, and is a natural next step to expand and deepen our relationship with China."

Quick Facts:

• As part of the BC Jobs Plan, the British Columbia government continues to build relationships, trade and investment ties with China and the Asia Pacific to help the province's businesses take advantage of our proximity to Asia, multicultural population, and low overall taxes.
• This effort is paying off - since 2001, the province's exports of goods to China have increased 691 per cent ($5.75 billion in 2012 from $727 million in 2001). China now is the province's second-most important destination for exports.
• British Columbia issues full-faith, general-obligation bonds. The Province is rated triple-A by Moody's Investor Services and Standard and Poor's.
• British Columbia has about $58.7 billion of net debt outstanding and annual borrowing requirements ranging between $5 billion and $8.1 billion annually over the next three years.
• The Province sources financing primarily from the Canadian capital market, but also is active in the international capital markets.
• Since 1990, B.C. has borrowed in US dollars, Euro, Hong Kong dollars, Swiss Francs, Yen, Sterling, and the former French Francs and Deutsche Marks. Over the past decade, the Province has borrowed $12.5 billion (CAD $ equivalent) from the foreign capital markets.
• Currently about 17 per cent of the Province's gross debt outstanding is denominated in foreign currencies, almost all of which is fully hedged back into Canadian dollars.

Learn More:

Economic Connections-B.C. and China - http://ow.ly/quvUh

Province of British Columbia Borrowing Program - http://ow.ly/quvWB

British Columbia, Canada and the Offshore Renminbi market - http://ow.ly/quusq

Media Contacts:

Jamie Edwardson
Communications Director
Ministry of Finance
British Columbia, Canada
(001) 250 888-0021

Government Communications and Public Engagement
Ministry of Finance
British Columbia, Canada
250 387-3514