The Newfoundland and Labrador government is looking to the European capital market to lower borrowing costs, opening a listing on the London Stock Exchange to find new buyers for the province's debt — already the highest per capita in Canada.
Premier Andrew Furey and Finance Minister Siobhan Coady were in London Monday to ring the opening bell at the city's stock exchange, on which the government is looking to sell up to one billion euros' worth of bonds.
According to Statistics Canada, Newfoundland and Labrador had a net debt per capita of $19,478 in 2021, the highest in the country. The government has long struggled to balance its books, as the costs of delivering services to one of the country's most sparsely populated provinces have often outweighed revenues.
The province will sell its debt on the European market only if the cost of borrowing is lower than it is on Canadian markets, Coady added. And to reduce rate risks associated with currency exchanges, any bonds sold will be hedged to Canadian fixed rates, officials said.
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