In 2003-04, $18.7 billion or almost three-quarters of the Province’s total long-term borrowing requirements were completed in the Canadian domestic market. The OFA used a number of cost-effective instruments to diversify its domestic borrowing program. These included Domestic Medium-Term Notes (DMTNs) with a variety of terms and structures, such as Floating Rate Notes (FRNs), and an amortizing bond.

While the majority of the borrowing was completed in the domestic market, Ontario also diversified its funding sources by raising the equivalent of $4.6 billion in foreign currencies, achieving funding costs below those available in the Canadian domestic markets. For example, the Province launched its first global bond denominated in Euros and also issued three U.S. dollar global bonds. Euro Medium-Term Notes (EMTNs) in Canadian dollars, Australian dollars, Swiss francs and Japanese yen were issued along with the Province’s first Hong Kong dollar bond. The Province also entered into a yen loan.

Total Long-Term Public Borrowing by Term