Exhibit 99.3
ADDITIONAL INFORMATION RELATING TO THE PROVINCE (1)
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Information Relating to Provincial Debt | |
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Debt of the Province | 2 - 13 |
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Consolidated Funded and Unfunded Debt of the Public Sector | 14 |
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Other Information | |
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Canadian Foreign Exchange Rate and International Reserves | 15 |
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Trade Balance | 16 |
(1) Any dollar amounts in Exhibit 99.3 are expressed in Canadian dollars ($) unless otherwise specified or the context otherwise requires.
1
DEBT OF THE PROVINCE
Direct and Guaranteed Debt
The direct debt of the Province includes debt for government purposes, as well as funds borrowed by the Province and loaned to its provincial government bodies. Direct borrowing by the Province for lending to provincial government bodies commenced in 1983.
With few exceptions, government bodies rely on the Province for fiscal agency loans to meet their borrowing requirements. The terms and conditions that apply to fiscal agency borrowings respecting payment of interest, principal and premium, if any, generally match those in the Province’s original borrowings.
Direct debt includes both funded and unfunded debt. Funded debt is defined as all debt having a maturity of one year or more from date of issuance; unfunded debt has a maturity within one year from date of issuance.
The final component of provincial debt relates to financial instruments that have been unconditionally guaranteed by the Province. Most of this debt was incurred by provincial government bodies prior to the introduction of fiscal agency borrowing in 1983. It also includes financial instruments issued by selected municipalities, improvement districts and local government entities, as well as all loan guarantees extended by the Province, including those extended to private entities and individuals.
The Warehouse Borrowing Program takes advantage of low interest rates to borrow money in advance of actual requirements. The debt will eventually be allocated to either the provincial government or provincial government bodies.
Non-guaranteed debt includes debt of the British Columbia Assessment Authority, British Columbia Housing Management Commission, BC Immigrant Investment Fund Ltd., B.C. Pavilion Corporation, BC Transportation Financing Authority, BC Liquor Distribution Branch, Canadian Blood Services (Province’s share), Columbia Basin Trust, Columbia Basin Power ( joint venture ), Community Living British Columbia, Community Social Service Employers’ Association, Creston Valley Wildlife Management Authority, Oil and Gas Commission, Provincial Rental Housing Corporation, Royal British Columbia Museum, School Districts, Universities, Colleges, and Health Authorities (SUCH sector). At March 31, 2012, $3,932 million of this debt is classified as taxpayer supported and $654 million is classified as self-supporting.
Financial statements for 2011/12 show that the Province’s total net debt (excluding non-guaranteed debt of $4,586 million) increased by $4,320 million; debt for government purposes increased by $1,957 million and debt for government corporation and warehouse program purposes increased by $2,363 million.
2
DIRECT FUNDED DEBT(1)
As at March 31, 2012
| | 2010 | | 2011 | | 2012 | |
| | | | | | | |
Government Purposes (2) | | | | | | | |
Payable in: | | | | | | | |
Canadian Dollars | | $ | 19,166 | | $ | 22,235 | | $ | 20,900 | (3) |
United States Dollars | | 547 | | 2,075 | | 5,026 | (4) |
| | 19,713 | | $ | 24,310 | | $ | 25,926 | |
Government Corporation Purposes | | | | | | | |
Canadian Dollars | | 13,135 | | 17,360 | | 19,531 | |
United States Dollars | | 1,444 | | 1,512 | | 2,373 | (5) |
| | 14,579 | | 18,871 | | 21,904 | |
Warehouse Borrowing Program Purposes | | | | | | | |
Canadian Dollars | | — | | — | | — | |
United States Dollars | | — | | — | | — | |
| | — | | — | | — | |
| | | | | | | |
Add/(Less) - Unrealized Foreign Exchange Gains/(Losses) | | 85 | | 68 | | 65 | |
| | 34,377 | | 43,250 | | 47,895 | |
Less - Unamortized Discount | | (23 | ) | 15 | | (92 | ) |
| | 34,400 | | 43,234 | | 47,986 | |
Less - Sinking Funds (2) | | 1,203 | | 1,410 | | 1,491 | |
| | 33,197 | | 41,825 | | 46,495 | |
Less - Amounts Held in Consolidated Revenue Fund | | 2 | | — | | — | |
| | | | | | | |
Net Direct Funded Debt | | 33,195 | | 41,825 | | 46,495 | |
| | | | | | | |
Less - Warehouse Borrowing Program Investments Available to Paydown Warehouse Borrowing Program Debt | | — | | — | | — | |
| | | | | | | |
Direct Funded Debt (net of warehouse assets) | | $ | 33,195 | | $ | 41,825 | | $ | 46,495 | |
(1) Unhedged foreign currency liabilities are recorded in the currency in which the debt obligations are payable, translated into Canadian dollar equivalents at the exchange rate prevailing at the end of the respective fiscal years.
(2) In compliance with generally accepted accounting principles (GAAP), defeased debt is added to debt for government purposes and the related defeased trust funds are added to sinking fund investments.
(3) Canadian dollar obligations include 700 million Swiss Francs was fully hedged to CAD$754 million; 527 million Hong Kong Dollars was fully hedged to CAD$84 million; and, 40 million Euro was fully hedged to CAD$56 million.
(4) U.S. dollar obligations include US$4,889 million was fully hedged to CAD$5,026 million.
(5) U.S. dollar obligations include US$2,115 million (CAD$2,373 million), of which US$1,888 million was fully hedged to CAD$2,147 million and US$227 million was unhedged (CAD$226 million).
3
CONSOLIDATION OF DIRECT AND GUARANTEED FUNDED AND UNFUNDED DEBT
As at March 31, 2012
| | Outstanding | | Sinking Fund | | Outstanding | |
| | (Gross) | | Investments | | (Net) | |
| | | | (in millions) | | | |
| | | | | | | |
Direct Debt | | | | | | | |
Government Purposes (1) | | $ | 25,926 | | $ | 243 | | $ | 25,682 | |
Government Corporation Purposes (2) | | 21,904 | | 1,248 | | 20,656 | |
Warehouse Program Purposes | | — | | — | | — | |
| | 47,830 | | 1,491 | | 46,339 | |
Less - Unrealized Foreign Exchange Losses | | -65 | | — | | -65 | |
Less - Unamortized Discounts | | -92 | | — | | -92 | |
Less - Amounts held in the Consolidated Revenue Fund | | 0 | | — | | 0 | |
Total Direct Debt | | 47,986 | | 1,491 | | 46,495 | |
| | | | | | | |
Guaranteed Debt | | | | | | | |
Government Corporations | | 10 | | — | | 10 | |
Municipalities, Improvement Districts and Other local government | | — | | — | | — | |
Other | | 33 | | — | | 33 | |
Total Guaranteed Debt | | 43 | | 0 | | 43 | |
| | | | | | | |
Less - Unamortized Discounts | | — | | — | | — | |
- Provision for Probable Payout | | — | | — | | 0 | |
| | 43 | | 0 | | 43 | |
| | | | | | | |
Non-Guaranteed Debt | | 3,680 | | — | | 3,680 | |
Less - Unamortized Discounts | | 26 | | | | 26 | |
Total Non-Guaranteed Debt | | 3,654 | | — | | 3,654 | |
| | | | | | | |
Total Direct, Guaranteed Funded and Unfunded, and Non-Guaranteed Debt of the Province, Net of Provincial Holdings of such Debt in the General Fund and Special Funds | | 51,684 | | 1,491 | | 50,193 | |
| | | | | | | |
Less - Warehouse Borrowing Program Investments Available to Paydown Warehouse Borrowing Program Debt | | — | | — | | — | |
| | | | | | | |
Total Direct, Guaranteed Funded and Unfunded Debt, and Non-Guaranteed Debt of the Province
(Net of Warehouse investments) | | $ | 51,684 | | $ | 1,491 | | $ | 50,193 | |
(1) In compliance with generally accepted accounting principles (GAAP), defeased debt is added to government purposes debt and the related defeased trust funds are added to sinking fund investments.
(2) Represents direct borrowing by the Province for relending to government corporations on identical terms
Note: Debt payable in foreign currencies is recorded at the relevant March 31, 2012 exchange rates after giving effect to any currency exchange agreements.
Direct unfunded gross debt of the Province (Promissory Notes) on March 31, 2012 totalled $6,101 million . This short term debt was comprised of $3,633 million in fiscal agency loans to government corporations and $2,468 million in loans for government. Further, all direct unfunded debt consisted of issues denominated in Cdn.
4
Financing
The financing requirements of the Province are met through short, medium and long term borrowing in public and private markets in Canada and abroad, including the federal Canada Pension Plan Investment Board (the “Plan”). Under the Plan, the Province and other provincial government bodies may refinance maturing Canada Pension Plan Investment Board debt with new debt equal to or less than the matured nominal amount.
The majority of British Columbia’s borrowing requirements are met through public domestic borrowings and Canada Pension Plan Investment Board loans. During the 2 2011/12 fiscal year, the Province borrowed or refinanced $335 million from the Canada Pension Plan Investment Board.
Sinking Fund Management
Sinking funds are no longer established or maintained on new or existing debt issued for government capital financing purposes. However, sinking funds do continue to be established and maintained relating to new or existing debt of the Province incurred to make loans to provincial government bodies. Consequently, provincial government bodies (with the exception of the British Columbia Hydro and Power Authority and Transportation Investment Corporation) who have received or are to receive fiscal agency loans from the Province with a term of five years or more will continue to be expected to make sinking fund contributions for the purpose of repayment of some or all the corresponding Provincial debt issues.
At March 31, 2012, the Province has $1.5 billion in sinking fund investments related to direct and guaranteed funded debt, including those held in trust on behalf of government bodies. Assuming an earnings rate of 3.5% on existing sinking fund investments and without contributing additional sinking fund installments, the funded debt of the Province at maturity will be 3.5% funded by available sinking funds (see “Maturity Schedule of Direct Funded Debt” table below); it would be 14.6% funded based on assumed earnings of 5% on existing sinking fund balances and future sinking fund installments.
5
MATURITY SCHEDULE OF DIRECT FUNDED DEBT
As at March 31, 2012
(Unaudited)
| | Canadian Dollars | | U.S. Dollars(1) | |
| | | | Projected | | | | | | Projected | | | |
| | Gross | | Sinking | | | | Gross | | Sinking | | | |
Fiscal | | Debt | | Fund | | Net Debt | | Debt | | Fund | | Net Debt | |
Year | | Maturities | | Values | | Maturities(2) | | Maturities | | Values | | Maturities(2) | |
| | (millions of dollars) | | (millions of dollars) | |
| | | | | | | | | | | | | |
2013 | | $ | 717 | | $ | 3 | | $ | 713 | | $ | — | | $ | — | | $ | — | |
2014 | | $ | 2,034 | | $ | 39 | | $ | 1,996 | | $ | 883 | | $ | 60 | | $ | 823 | |
2015 | | $ | 2,306 | | $ | 26 | | $ | 2,279 | | $ | — | | $ | — | | $ | — | |
2016 | | $ | 189 | | $ | 26 | | $ | 163 | | $ | 1,501 | | $ | 300 | | $ | 1,201 | |
2017 | | $ | 312 | | $ | — | | $ | 312 | | $ | 1,443 | | $ | — | | $ | 1,443 | |
| | $ | 5,558 | | $ | 94 | | $ | 5,464 | | $ | 3,827 | | $ | 360 | | $ | 3,467 | |
| | | | | | | | | | | | | |
2017 - 22 | | $ | 11,137 | | $ | 1,396 | | $ | 9,741 | | $ | 743 | | $ | — | | $ | 743 | |
2022 - 27 | | $ | 3,831 | | $ | 484 | | $ | 3,348 | | $ | 593 | | $ | 167 | | $ | 427 | |
2027 - 32 | | $ | 5,361 | | $ | 995 | | $ | 4,366 | | $ | — | | $ | — | | $ | — | |
2032 - 37 | | $ | 703 | | $ | 21 | | $ | 681 | | $ | 353 | | $ | 66 | | $ | 287 | |
2037 - 42 | | $ | 4,996 | | $ | 1,333 | | $ | 3,663 | | $ | — | | $ | — | | $ | — | |
2042 - 47 | | $ | 3,770 | | $ | 250 | | $ | 3,520 | | $ | — | | $ | — | | $ | — | |
2047 - 52 | | $ | 567 | | $ | 92 | | $ | 475 | | $ | — | | $ | — | | $ | — | |
2052 - 57 | | $ | 130 | | $ | — | | $ | 130 | | $ | — | | $ | — | | $ | — | |
| | $ | 36,053 | | $ | 4,664 | | $ | 31,389 | | $ | 5,516 | | $ | 593 | | $ | 4,923 | |
(1) Debt payable in U.S. dollars is not translated into Canadian dollars. Debt payable in other foreign currencies is recorded after giving effect to any currency exchange agreements.
(2) Net debt maturities represent gross debt maturities minus projected sinking fund values at maturity, based on earnings of 5% on existing sinking fund balances as of March 31, 2012. The calculations exclude sinking fund installments which are scheduled to be made in the future and unamortized discount.
6
MATURITY SCHEDULE OF GUARANTEED FUNDED DEBT
As at March 31, 2012
(Unaudited)
| | Canadian Dollars | | U.S. Dollars | |
| | | | Projected | | | | | | Projected | | | |
| | Gross | | Sinking | | | | Gross | | Sinking | | | |
Fiscal | | Debt | | Fund | | Net Debt | | Debt | | Fund | | Net Debt | |
Year | | Maturities | | Values | | Maturities | | Maturities | | Values | | Maturities | |
| | (millions of dollars) | | (millions of dollars) | |
| | | | | | | | | | | | | |
2011 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
2012 | | — | | — | | — | | — | | — | | — | |
2013 | | — | | — | | — | | — | | — | | — | |
2014 | | — | | — | | — | | — | | — | | — | |
2015 | | — | | — | | — | | — | | — | | — | |
| | — | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | |
2016 - 2020 | | — | | — | | — | | — | | — | | — | |
2021 - 2025 | | 10 | | — | | 10 | | — | | — | | — | |
2026 - 2030 | | — | | — | | — | | — | | — | | — | |
2031 - 2035 | | — | | — | | — | | — | | — | | — | |
Other(1) | | 56 | | — | | 56 | | — | | — | | — | |
| | | | | | | | | | | | | |
| | $ | 66 | | $ | — | | $ | 66 | | $ | — | | $ | — | | $ | — | |
(1) Includes Province miscellaneous Guarantees.
7
STATEMENT OF DIRECT FUNDED AND UNFUNDED DEBT
At March 31, 2012
| | | | Year of | | Interest | | Outstanding | | |
Series | | Date of Maturity | | Issue | | Rate | | March 31, 2012 | | References |
| | | | | | (percent) | | ($ Millions) | | |
Long-Term and Medium-Term Debt Issued by Province of British Columbia: | | | | | | | | | |
| | | | | | | | | | |
BCCD-13 | | December 18, 2012 | | 2007 | | 4.70 | | 500 | | (2) |
BCEC-19 | | April 24, 2013 | | 2003 | | 5.50 | | 350 | | (1) (5) |
BCCD-N | | August 23, 2013 | | 1993 | | 8.50 | | 1,100 | | (2) |
BCCMTN-44 | | August 23, 2013 | | 1995 | | 9.60 | | 60 | | (2) |
BCCMTN-50 | | August 23, 2013 | | 1995 | | 9.25 | | 65 | | (2) |
BCCMTN-53 | | August 23, 2013 | | 1995 | | 8.50 | | 360 | | (2) |
BCCMTN-80 | | August 23, 2013 | | 1999 | | 5.75 | | 100 | | (2) |
BCCD-Q | | June 9, 2014 | | 1994 | | 7.50 | | 400 | | (2) |
BCCMTN-33 | | June 9, 2014 | | 1994 | | 9.625 | | 25 | | (2) |
BCCMTN-34 | | June 9, 2014 | | 1994 | | 9.625 | | 50 | | (2) |
BCCMTN-38 | | June 9, 2014 | | 1994 | | 9.60 | | 90 | | (2) |
BCCD-9 | | June 18, 2014 | | 2004 | | 5.30 | | 500 | | (2) |
BCCD-17 | | June 18, 2014 | | 2008 | | 4.25 | | 1,100 | | (2) |
BCCMTN-27 | | June 20, 2014 | | 1994 | | 8.50 | | 50 | | (2) |
BCCD-3 | | December 18, 2015 | | 2003 | | 5.15 | | 150 | | (2) |
BCEC-20 | | April 28, 2016 | | 2011 | | 2.875 | | 100 | | (1)(5) |
BCCMTN-25 | | October 3, 2016 | | 1994 | | 9.125 | | 45 | | (2) |
BCCD-16 | | December 1, 2017 | | 2007 | | 4.70 | | 500 | | (2) |
BCCD-2 | | June 1, 2018 | | 2003 | | 5.60 | | 200 | | (2) |
BCCD-21 | | December 18, 2018 | | 2008 | | 4.65 | | 1,700 | | (2) |
BCCMTN-26 | | June 17, 2019 | | 1994 | | 9.00 | | 50 | | (2) |
BCCD-8 | | June 17, 2019 | | 2004 | | 5.30 | | 225 | | (2) |
BCCD-23 | | December 18, 2019 | | 2009 | | 4.10 | | 1,600 | | (2) |
BCCD-C | | September 5, 2020 | | 1990 | | 10.60 | | 600 | | (2) |
BCCMTN-46 | | September 5, 2020 | | 1995 | | 10.60 | | 20 | | (2) |
BCCD-24 | | December 18, 2020 | | 2010 | | 3.70 | | 1,700 | | (2) |
BCCD-G | | May 15, 2021 | | 1996 | | 9.95 | | 296 | | (2) |
BCCD-12 | | June 15, 2021 | | 2007 | | 4.80 | | 330 | | (2) |
BCCD-26 | | December 18, 2021 | | 2011 | | 3.25 | | 1,750 | | (2) |
BCCMTN-76 | | February 23, 2022 | | 1999 | | 6.00 | | 25 | | (2) |
BCCD-L | | June 9, 2022 | | 1992 | | 9.50 | | 450 | | (2) |
BCCD-M | | August 19, 2022 | | 1992 | | 8.75 | | 300 | | (2) |
BCCMTN-77 | | February 23, 2023 | | 1999 | | 6.00 | | 25 | | (2) |
BCCD-P | | September 8, 2023 | | 1993 | | 8.00 | | 400 | | (2) |
BCCMTN-60 | | September 8, 2023 | | 1995 | | 8.00 | | 35 | | (2) |
BCCMTN-79 | | September 8, 2023 | | 1999 | | 6.40 | | 50 | | (2) |
BCEC-13 | | November 30, 2023 | | 1993 | | 7.875 | | 350 | | (1) (5) |
BCCMTN-78 | | February 23, 2024 | | 1999 | | 6.00 | | 100 | | (1) |
BCCD-T | | August 23, 2024 | | 1994 | | 9.00 | | 400 | | (2) |
BCCMTN-40 | | August 23, 2024 | | 1995 | | 9.00 | | 35 | | (2) |
BCCMTN-52 | | August 23, 2024 | | 1995 | | 9.00 | | 200 | | (2) |
BCCMTN-56 | | August 23, 2024 | | 1995 | | 8.50 | | 30 | | (2) |
BCCMTN-62 | | August 23, 2024 | | 1996 | | 7.875 | | 200 | | (2) |
BCCMTN-82 | | August 23, 2024 | | 1999 | | 7.00 | | 55 | | (2) |
BCCMTN-63 | | June 9, 2026 | | 1996 | | 8.00 | | 110 | | (2) |
BCCMTN-64 | | December 4, 2026 | | 1996 | | 7.00 | | 50 | | (2) |
BCCMTN-74 | | December 4, 2026 | | 1999 | | 7.00 | | 75 | | (2) |
BCCMTN-65 | | June 9, 2027 | | 1997 | | 7.50 | | 50 | | (2) |
BCCD-W | | November 19, 2027 | | 1997 | | 6.15 | | 500 | | (2) |
BCCMTN-70 | | August 17, 2028 | | 1998 | | 5.62 | | 200 | | (2) |
BCCD-X | | June 18, 2029 | | 1998 | | 5.70 | | 2,285 | | (2) |
BCCMTN-83 | | June 18, 2029 | | 1999 | | 5.861 | | 250 | | (2) |
BCCD-14 | | June 18, 2029 | | 2007 | | 5.15 | | 200 | | (2) |
BCCD-Z | | June 18, 2031 | | 2000 | | 6.35 | | 1,400 | | (2) |
8
| | | | Year of | | Interest | | Outstanding | | |
Series | | Date of Maturity | | Issue | | Rate | | March 31, 2012 | | References |
| | | | | | (percent) | | ($ Millions) | | |
BCCD-19 | | June 18, 2031 | | 2008 | | 5.00 | | 200 | | (2) |
BCCD-7 | | June 18, 2035 | | 2004 | | 5.40 | | 500 | | (2) |
BCCD-11 | | June 18, 2037 | | 2006 | | 4.70 | | 1,500 | | (2) |
BCCMTN-69 | | January 9, 2039 | | 1998 | | 5.75 | | 150 | | (2) |
BCCMTN-73 | | January 9, 2039 | | 1998 | | 6.00 | | 65 | | (2) |
BCCMTN-84 | | August 23, 2039 | | 1999 | | 6.30 | | 200 | | (2) |
BCCD-22 | | June 18, 2040 | | 2009 | | 4.95 | | 2,300 | | (2) |
BCCD-25 | | June 18, 2042 | | 2010 | | 4.30 | | 3,450 | | (2) |
BCCD-1 | | June 18, 2043 | | 2003 | | 5.25 | | 150 | | (2) |
BCCD-10 | | August 23, 2044 | | 2004 | | 5.75 | | 120 | | (2) |
BCCD-18 | | June 18, 2045 | | 2008 | | 4.60 | | 50 | | (2) |
BCCD-15 | | June 18, 2048 | | 2007 | | 4.90 | | 547 | | (2) |
BCCD-20 | | June 18, 2049 | | 2008 | | 4.60 | | 20 | | (2) |
BCCD-27 | | June 18, 2055 | | 2012 | | 3.5 | | 130 | | (2) |
| | | | | | | | | | |
Canada Pension Plan Investment | | | | | | | | | | |
Board issues | | | | 1992 -2012 | | 2.24-9.45 | | 3,668 | | (2) (4) |
Other | | | | | | | | 237 | | (6) |
Short-term Promissory Notes | | | | | | | | 4,416 | | |
Total Issues in Canadian Dollars | | | | | | | | $ | 39,494 | | |
| | | | | | | | | | |
BCUSG-3 | | May 30, 2013 | | 2003 | | 4.30 | | 500 | | (2) (5) |
BCEMTN-22 | | October 28, 2013 | | 1998 | | Floating | | 100 | | (3) |
BCDUS-1 | | April 23, 2018 | | 2008 | | 4.25 | | 200 | | (2) |
BCUSD-2 | | January 15, 2026 | | 1996 | | 6.50 | | 500 | | (2) (5) |
BCUSD-3 | | September 1, 2036 | | 1996 | | 7.25 | | 300 | | (2) (5) |
BCUSD-4 | | June 15, 2015 | | 2010 | | 2.85 | | 1,500 | | (2) (5) |
BCUSG-5 | | May 18, 2016 | | 2011 | | 2.10 | | 1,500 | | (2)(5) |
BCUSG-6 | | September 22, 2021 | | 2011 | | 2.65 | | 750 | | (2)(5) |
Short-term Promissory Notes | | | | | | | | 1,654 | | |
| | | | | | | | | | |
Total Issues in U.S. Dollars * | | | | | | | | US $ | 7,004 | | |
Exchange Premium (Including Hedge) | | | | | | | | 395 | | |
| | | | | | | | | | |
U.S. Issues at Canadian Dollar Equivalent | | | | | | | | C $ | 7,399 | | |
| | | | | | | | | | |
BCSFR-5 | | December 27, 2017 | | 2008 | | 2.875 | | 325 | | (1) |
BCSFR-6 | | November 27, 2018 | | 2009 | | 2.875 | | 275 | | (1) |
BCSFR-7 | | April 18, 2030 | | 2010 | | 2.500 | | 100 | | (1) |
Total Issues in Swiss Francs ** | | | | | | | | CHF | 700 | | |
Exchange Premium (Including Hedge) | | | | | | | | 54 | | |
| | | | | | | | | | |
Swiss Franc Issues at Canadian Dollar Equivalent ** | | | | | | C $ | 754 | | |
| | | | | | | | | | |
BCHKD-1 | | April 22, 2014 | | 2009 | | 2.81 | | 527 | | (1) |
Total Issues in Hong Kong Dollars ** | | | | | | | | HKD | 527 | | |
Exchange Premium (Including Hedge) | | | | | | | | (443 | ) | |
| | | | | | | | | | |
Hong Kong Issues at Canadian Dollar Equivalent ** | | | | | | C $ | 84 | | |
| | | | | | | | | | |
BCEURO-1 | | November 8, 2038 | | 2011 | | 3.21 | | 40 | | (1) |
Total Issues in Euros** | | | | | | | | EUR | 40 | | |
Exchange Premium (Including Hedge) | | | | | | | | 16 | | |
Euro Issues at Canadian Dollar Equivalent ** | | | | | | C $ | 56 | | |
| | | | | | | | | |
Gross Direct Debt Issued by the Province
(In Canadian Dollar Equivalents) | | | | | | | | C$ | 47,787 | | |
| | | | | | | | | | | | |
* | | Payable and expressed in U.S. dollars. Debt payable in US $6,777 million has been hedged to Cdn $7,173million, US$227 is unhedged. This balance was translated at the exchange rate prevailing at year-end. |
| | |
** | | Foreign currency debt other than U.S. has been fully hedged to Canadian dollars. |
9
REFERENCES TO STATEMENTS OF DEBT
1) | Interest payable annually. |
2) | Interest payable semi-annually. |
3) | Interest payable quarterly. |
4) | Pursuant to provisions for investment of Canada Pension Plan Investment Board Funds, this issue is redeemable as a whole or in part on 30 days notice at the option of the Minister of Finance for British Columbia, subject to certain restrictions (CPPIB issues). |
5) | Callable by the issuer if taxation laws requiring additional payments are imposed or levied. |
6) | Direct capital leases and Federal loans to the BC Immigrant Investment Fund. |
10
STATEMENT OF DIRECT FUNDED AND UNFUNDED DEBT
At March 31, 2012
| | Amount | |
| | Outstanding | |
| | March 31, 2012 | |
| | ($ Millions) | |
| | | |
Gross Direct Debt issued by the Province(1) (in Canadian Dollar Equivalents) | | | | 47,830 | |
| | | | | |
Less - Fiscal Agency Borrowings on behalf of: | | | | | |
Warehouse Borrowing Program | | — | | | |
| | | | | |
British Columbia Housing Management Commission | | 141 | | | |
British Columbia Hydro and Power Authority | | 12,965 | | | |
British Columbia Institute of Technology | | 13 | | | |
British Columbia Lottery Corporation | | 90 | | | |
British Columbia Pavilion Corporation | | 150 | | | |
British Columbia Transit | | 241 | | | |
British Columbia Transmission Corporaton | | — | | | |
British Columbia Transportation Financing Authority | | 6,406 | | | |
College of the Rockies | | 3 | | | |
Columbia Power Corporation | | — | | | |
Douglas College | | — | | | |
Okanagan College | | 5 | | | |
Partnerships British Columbia | | — | | | |
Rapid Transit Project 2000 Ltd. | | — | | | |
School District 44 | | 7 | | | |
Selkirk College | | — | | | |
Simon Fraser University | | 8 | | | |
Thompson Rivers University | | 6 | | | |
Transportation Investment Corporation | | 1,808 | | | |
University of British Columbia | | 153 | | | |
University of Northern British Columbia | | 15 | | | |
University of Victoria | | 21 | | | |
| | 22,054 | | 22,054 | |
Gross Direct Debt | | | | 25,776 | |
Less — Unrealized Foreign Exchange losses | | (1 | ) | | |
—Unamortized Discount | | (56 | ) | | |
—Government Sinking Funds(1) | | 243 | | | |
—Bonds held in the Consolidated Revenue Fund | | — | | 188 | |
Total Net Direct Debt | | | | 25,588 | |
Gross Fiscal Agency Reloaned Debt | | | | 22,054 | |
Less —Gross Fiscal Agency Debt | | | | 22,054 | |
Gross Fiscal Agency Debt for Warehouse Borrowing Program Purposes | | | | — | |
Add —Unamortized Discount/(Premium) | | — | | — | |
Total Net Fiscal Agency Debt for Warehouse Borrowing Program Purposes | | | | — | |
Gross Fiscal Agency Debt | | | | 22,054 | |
Add — Unrealized Foreign Exchange Gains | | 66 | | | |
— Unamortized Premiums | | (35 | ) | | |
Less — Government Sinking Funds | | 1,248 | | 1,147 | |
Total Net Fiscal Agency Debt | | | | 20,907 | |
Total Net Direct and Fiscal Agency Debt, Warehouse Borrowing Program Debt | | | | 46,495 | |
Less —Warehouse Borrowing Program Investments Available to Paydown Warehouse Borrowing Program Debt | | | | — | |
Total Net Direct and Fiscal Agency Debt | | | | 46,495 | |
(1) | In compliance with generally accepted accounting principles (GAAP), defeased debt is added to Direct debt and the related defeased trust funds are added to sinking fund investments. |
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NET GUARANTEED DEBT
At March 31, 2012
| | | | | | | | Amount | |
Issuer | | | | Year of | | Interest | | Outstanding (1) | |
& Series | | Year of Maturity | | Issue | | Rate | | March 31/2012 | |
| | | | | | (percent) | | (millions of | |
| | | | | | | | Cdn. dollars) | |
| | | | | | | | | |
British Columbia Hydro and Power Authority | | 2024 | | 2004 | | 5.54 | | 10 | |
| | | | | | | | | |
Plus — Other Guaranteed Debt(2) | | | | | | | | 33 | |
| | | | | | | | 43 | |
Less — Provisions for Probable Payout | | | | | | | | 8 | |
Total Net Guaranteed Debt | | | | | | | | 35 | |
(1) | Total net of sinking funds and unamortized discount. |
(2) | Includes outstanding loan guarantees of student assistance loans, loans to agricultural producers and guarantees issued under economic development assistance programs. |
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NON-GUARANTEED DEBT
As At March 31, 2012
| | (millions of | |
| | Cdn. dollars) | |
Taxpayer-Supported Debt | | | |
BC Housing Management Commission | | 302 | |
BC Immigrant Investment Fund | | 398 | |
BC Pavilion Corporation | | 383 | |
BC Transportation Financing Authority | | 890 | |
Columbia Basin Trust | | 33 | |
Homeowner Protection Office | | 0 | |
Health facilities | | 1,156 | |
Post-Secondary | | 488 | |
Provincial Rental Housing | | 218 | |
Schools | | 26 | |
Other(1) | | 38 | |
Total Taxpayer-Supported Non-Guaranteed Debt | | 3,932 | |
| | | |
Self-Supported Debt | | | |
Commercial Crown Corporations and Agencies | | | |
British Columbia Liquor Distribution | | 0 | |
British Columbia Transmission Corporation | | 0 | |
Columbia River Power Projects(2) | | 481 | |
Post-Secondary institutions’ subsidiaries | | 173 | |
Total Self-Supported Non-Guaranteed Debt | | 654 | |
| | | |
Total Non-Guaranteed Debt | | 4,586 | |
Total Non-Guaranteed Debt | | — | |
(1) Includes debt of the British Columbia Assessment Authority, British Columbia Public School Employees Association, Community Living British Columbia, Community Social Services Employer’s Association, Creston Valley Wildlife Management Authority Trust, Oil & Gas Commission, and Royal BC Museum.
(2) Joint ventures of Columbia Power Corporation and Columbia Basin Trust.
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CONSOLIDATED FUNDED AND UNFUNDED DEBT OF THE PUBLIC SECTOR
As at March 31, 2012
The financial statements of the Province include funded and unfunded debt of public entities within British Columbia which is either guaranteed or reloaned by the Province, and include the funded debt of such entities which is not guaranteed by the Province.
| | Outstanding(1),(2) | | Unamortized | | Unrealized foreign | | Sinking Fund | | Oustanding | |
| | Gross | | Discount | | exchange gains | | Investments(2) | | Net | |
| | (in Millions of Cdn dollars) | |
| | | | | | | | | | | |
Direct and Guaranteed Funded and Unfunded Debt of the Province | | 47,873 | | $ | (92 | ) | $ | 65 | | $ | 1,491 | | $ | 46,539 | |
Plus: Non-Guaranteed Debt | | 3,680 | | 26 | | — | | — | | 3,654 | |
Total Consolidated Funded Debt of the Public Sector of British Columbia | | $ | 51,553 | | $ | (66 | ) | $ | 65 | | $ | 1,491 | | $ | 50,193 | |
| | | | | | | | | | | | | | | | |
(1) | | Balance does not include the Provision for Probable Payout ($7 million). |
| | |
(2) | | In compliance with generally accepted accounting principles (GAAP), defeased debt is added to Direct debt and the related defeased trust funds are added to sinking fund investments. |
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CANADIAN FOREIGN EXCHANGE RATE AND
INTERNATIONAL RESERVES
Recent highest and lowest exchange rates for the Canadian dollar in terms of United States cents are as follows for the calendar year ended December 31:
| | 2007 | | 2008 | | 2009 | | 2010 | | 2011 | |
| | | | | | | | | | | |
Highest | | 110.30 | | 102.98 | | 97.55 | | 100.69 | | 106.30 | |
| | | | | | | | | | | |
Lowest | | 84.19 | | 76.88 | | 76.53 | | 92.18 | | 93.83 | |
On March 31, 2012, the noon spot rate for the U.S. dollar was 0.9991
Source: Bank of Canada
The total of Canada’s official international reserves on December 31, 2007 to 2011 is as follows:
December 31 | |
2007 | | 2008 | | 2009 | | 2010 | | 2011 | |
(US$ Millions) | |
| | | | | | | | | |
$ | 41,081 | | $ | 43,872 | | $ | 54,357 | | $ | 57,151 | | $ | 65,819 | |
| | | | | | | | | | | | | | |
Source: Bank of Canada
(1) | | US$32,826 million, US$167 million in gold, US$3,875 million in the International Monetary Fund Reserve, US$8,966 million in Special Drawing Rights and US$19,985 million in other foreign currencies. |
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TRADE BALANCE
Exports and Imports (all figures in nominal dollars):
Based on the provincial economic accounts 2010 estimates (November 2011), BC’s exports of goods and services totaled $75.9 billion during the 2010 calendar year. International exports comprised $43.7 billion (57.6%) of BC’s total exports, and represented 9.1% of Canada’s total international exports; while inter-provincial exports accounted for $32.2 billion (42.4%) of BC’s total exports. BC’s imports of goods and services totaled $93.4 billion, consisting of $51.3 billion (55.0%) international imports and $42.0 billion (45.0%) inter-provincial imports. BC’s international imports accounted for 10.1% of Canada’s total international imports. In 2010, BC registered a trade deficit of $17.4 billion, which consists of a $7.6 billion deficit in trade from abroad and a $9.8 billion deficit accruing from inter-provincial trade. In 2009, BC registered an overall trade deficit of $16.1 billion. BC had a $7.5 billion deficit in international trade in 2009, as well as an $8.6 billion deficit in inter-provincial trade.
International exports of goods originating from BC (computed by BC Stats using customs based data) were $32.8 billion in 2011, an increase of 14.0% compared to $28.7 billion in 2010. This increase was largely driven by a 24.9% increase in the value of energy product exports, while increases were also observed in the value of wood product exports (11.7%), and metallic mineral products (11.6%).
The United States remained BC’s principal international export market in 2011, accounting for 42.7% of the international exports of goods.
Source: Statistics Canada
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