EX-99.3 4 a06-18314_1ex99d3.htm EX-99.3 ADDITIONAL INFORMATION RELATING TO THE PROVINCE

Exhibit 99.3

ADDITIONAL INFORMATION RELATING TO THE PROVINCE(1)

Information Relating to Provincial Debt

 

 

 

Page

 

Debt of the Province

 

2-14

 

Consolidated Funded and Unfunded Debt of the Public Sector

 

15

 

Canadian Foreign Exchange Rate and International Reserves

 

16

 

Trade Balance

 

17

 

(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 Transportation Financing Authority, British Columbia Liquor Distribution Branch, British Columbia Transit, British Columbia Transmission Corporation, Canadian Blood Services, (Province’s share), Columbia Basin Trust, Columbia River Power Projects (joint ventures of Columbia Basin Trust and Columbia Power Corporation), Community Living British Columbia, Homeowner Protection Office, Oil & Gas Commission,  Provincial Rental Housing Corporation and School districts, Universities, Colleges, Institutes and Health Authorities (SUCH). At March 31, 2006, $1,174 million of this debt is classified as taxpayer supported and $259 million is classified as self-supporting.

Financial statements for 2005/06 show that the Province’s total net debt (excluding non-guaranteed debt of $1,433 million) decreased by $1,935 million, debt for government purposes decreased by $2,077 million, and debt for provincial government bodies decreased by $142 million.

2



DIRECT FUNDED DEBT(1)
As at March 31, 2006

 

 

2004

 

2005

 

2006

 

 

 

(millions of dollars)

 

Government Purposes(2)

 

 

 

 

 

 

 

Payable in:

 

 

 

 

 

 

 

Canadian Dollars

 

$

24,267

 

$

23,418

 

$

20,699

(3)

United States Dollars

 

4,362

 

3,825

 

3,774

(4)

 

 

28,629

 

27,243

 

24,473

 

Government Corporation Purposes

 

 

 

 

 

 

 

Canadian Dollars

 

8,630

 

8,282

 

8,370

(5)

United States Dollars

 

2,143

 

1,886

 

1,893

(6)

 

 

10,773

 

10,168

 

10,263

 

Warehouse Borrowing Program Purposes

 

 

 

 

 

 

 

Canadian Dollars

 

—

 

—

 

—

 

United States Dollars

 

—

 

—

 

—

 

 

 

—

 

—

 

—

 

Add/(Less) — Unrealized Foreign Exchange Gains/(Losses)

 

84

 

279

 

138

 

 

 

39,486

 

37,690

 

34,874

 

Less — Unamortized Discount

 

111

 

111

 

109

 

 

 

39,375

 

37,579

 

34,765

 

Less — Sinking Funds(2)

 

4,022

 

3,816

 

3,711

 

 

 

35,353

 

33,763

 

31,054

 

Less — Amounts Held in Consolidated Revenue Fund

 

11

 

8

 

7

 

Net Direct Funded Debt

 

35,342

 

33,755

 

31,047

 

Less — Warehouse Borrowing Program Investments Available to Paydown Warehouse Borrowing Program Debt

 

—

 

—

 

—

 

Direct Funded Debt (net of warehouse assets)

 

$

35,342

 

$

33,755

 

$

31,047

 

(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 governement purposes and the related defeased trust funds are added to sinking fund investments. Figures for 2004 have been restated to conform with the presentation used in 2004/2005.

(3)  Canadian dollar obligations include notes payable in Japanese yen totalling 22 billion yen which have been fully hedged to $263 million Canadian through currency exchange agreements, Swiss franc notes totalling 400 million Swiss Francs which have been fully hedged to $418 million Canadian through currency exchange agreements, and Euro notes totalling 805 million Euros which have been fully hedged to $1,394 million Canadian through currency exchange agreements.

(4)      Includes U.S. dollar notes totalling $2,277 million which have been fully hedged to $3,417 million Canadian through currency exchange agreements, U.S. dollar notes totalling $300 million which have been fully hedged to 36 billion yen which have been translated at the exchange rate prevailing at the end of the fiscal year.

(5)      Canadian dollar obligations include notes payable in Euro notes totalling 112 million Euros which have been fully hedged to $187 million Canadian through currency exchange agreements.

(6)      Includes U.S. dollar notes totalling $1,095 million which have been fully hedged to $1,452 million Canadian through currency exchange agreements and unhedged U.S. dollar notes totalling $378 million which have been translated at the exchange rate prevailing at the end of the fiscal year.

3



CONSOLIDATION OF DIRECT AND GUARANTEED FUNDED AND UNFUNDED DEBT

As at March 31, 2006

 

 

Outstanding

 

Investments
Sinking Fund

 

Outstanding

 

 

 

(Gross)

 

 

 

(Net)

 

 

 

(in millions)

 

Direct Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

Government Purposes(1)

 

 

$

25,385

 

 

 

$

2,571

 

 

 

$

22,814

 

 

Government Corporation Purposes(2)

 

 

11,396

 

 

 

1,488

 

 

 

9,908

 

 

Warehouse Program Purposes

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

36,781

 

 

 

4,059

 

 

 

32,722

 

 

Add — Unrealized Foreign Exchange Gains

 

 

138

 

 

 

—

 

 

 

138

 

 

Less — Unamortized Discounts

 

 

119

 

 

 

—

 

 

 

119

 

 

Less — Amounts held in the Consolidate Revenue Fund

 

 

7

 

 

 

—

 

 

 

7

 

 

Total Direct Debt

 

 

36,793

 

 

 

4,059

 

 

 

32,734

 

 

Guaranteed Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

Government Corporations

 

 

10

 

 

 

—

 

 

 

10

 

 

Municipalities, Improvement Districts and Other local government

 

 

2

 

 

 

1

 

 

 

1

 

 

Other

 

 

178

 

 

 

—

 

 

 

178

 

 

Total Guaranteed Debt

 

 

190

 

 

 

1

 

 

 

189

 

 

Less — Guaranteed Debt held in the General Fund and Special Funds

 

 

—

 

 

 

—

 

 

 

—

 

 

— Provision for Probable Payout

 

 

9

 

 

 

—

 

 

 

9

 

 

 

 

 

181

 

 

 

1

 

 

 

180

 

 

Non-Guaranteed Debt

 

 

1,445

 

 

 

—

 

 

 

1,445

 

 

Less — Unamortized Discounts

 

 

12

 

 

 

—

 

 

 

12

 

 

Total Non-Guaranteed Debt

 

 

1,433

 

 

 

—

 

 

 

1,433

 

 

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

 

 

38,407

 

 

 

4,060

 

 

 

34,347

 

 

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)

 

 

$

38,407

 

 

 

$

4,060

 

 

 

$

34,347

 

 

(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, 2006 exchange rates after giving effect to any currency exchange agreements.

Direct unfunded debt of the Province (Promissory Notes) totalled $1,687 million as at March 31, 2006 (maturity value less unamortized discount and sinking funds). This debt component comprised of $887 million in fiscal agency loans to government corporations and $800 million in loans for government purposes. Further, the direct unfunded debt was comprised of Cdn $1,448 million and US $199 million (Cdn $239 million) dollars.

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 from the federal Canada Pension Plan (the ‘‘Plan’’). Under the Plan, the monthly contributions made by residents of British Columbia, net of current Plan disbursements, are available for borrowing by the Province and other provincial government bodies.

The majority of British Columbia’s borrowing requirements are met through public domestic borrowings and Canada Pension Plan loans. During the 2005/06 fiscal year, the Province borrowed only from the Canada Pension Plan.

Sinking Fund Management

On June 1, 1999, the Provincial government revised its sinking fund policy and discontinued sinking fund contributions on existing and new debt issued for government operating and capital financing purposes. Under the revised policy, the Province does not establish sinking funds on new debt but continues to manage sinking fund contributions made prior to June 1, 1999 (and the earnings attributable to those contributions) for the purpose of repayment of the applicable debt issues.

This revised policy does not apply to sinking funds 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) 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.

Given that the province borrowed money to make sinking fund payments, the policy change did not impact the amount of net debt outstanding. The Province continues to follow one of the most conservative sinking fund policies among provinces for its provincial government bodies.

At March 31, 2006, the Province had $4.1 billion in sinking fund investments related to direct and guaranteed funded debt, including those held in trust on behalf of provincial government bodies. Assuming an earnings rate of 5% on existing sinking fund investments and without contributing additional sinking fund installments, the Province’s funded debt at maturity will be 16% funded by available sinking funds (see following table) and would be 20% 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, 2006
(Unaudited)

 

 

Canadian Dollars

 

U.S. Dollars(1)

 

 

 

 

 

Projected

 

 

 

 

 

Projected

 

 

 

 

 

Gross Debt

 

Sinking

 

Net Debt

 

Gross Debt

 

Sinking

 

Net Debt

 

Fiscal Year

 

 

 

Maturities

 

Fund Values

 

Maturities(2)

 

   Maturities   

 

Fund Values

 

Maturities(2)

 

 

 

(millions of dollars)

 

(millions of dollars)

 

2007

 

 

$

2,185

 

 

 

$

370

 

 

 

$

1,815

 

 

 

$

750

 

 

 

$—

 

 

 

$

750

 

 

2008

 

 

1,425

 

 

 

211

 

 

 

1,214

 

 

 

900

 

 

 

75

 

 

 

825

 

 

2009

 

 

2,295

 

 

 

305

 

 

 

1,990

 

 

 

750

 

 

 

—

 

 

 

750

 

 

2010

 

 

2,519

 

 

 

334

 

 

 

2,185

 

 

 

250

 

 

 

2

 

 

 

248

 

 

2011

 

 

2,691

 

 

 

409

 

 

 

2,282

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

11,115

 

 

 

1,629

 

 

 

9,486

 

 

 

2,650

 

 

 

77

 

 

 

2,573

 

 

2012 - 16

 

 

6,390

 

 

 

1,643

 

 

 

4,747

 

 

 

600

 

 

 

43

 

 

 

557

 

 

2017 - 21

 

 

1,547

 

 

 

348

 

 

 

1,199

 

 

 

—

 

 

 

—

 

 

 

—

 

 

2022 - 26

 

 

4,161

 

 

 

701

 

 

 

3,460

 

 

 

500

 

 

 

159

 

 

 

341

 

 

2027 - 31

 

 

3,270

 

 

 

328

 

 

 

2,942

 

 

 

—

 

 

 

—

 

 

 

—

 

 

2032 - 36

 

 

1,921

 

 

 

241

 

 

 

1,680

 

 

 

—

 

 

 

—

 

 

 

—

 

 

2037 - 41

 

 

415

 

 

 

101

 

 

 

314

 

 

 

300

 

 

 

63

 

 

 

237

 

 

2042 - 46

 

 

250

 

 

 

21

 

 

 

229

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

$

29,069

 

 

 

$

5,012

 

 

 

$

24,057

 

 

 

$

4,050

 

 

 

$

342

 

 

 

$

3,708

 

 

(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, 2006. 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, 2006
(Unaudited)

 

 

Canadian Dollars

 

U.S. Dollars(1)

 

 

 

 

 

Projected

 

 

 

 

 

Projected

 

 

 

 

 

Gross Debt

 

Sinking

 

Net Debt

 

Gross Debt

 

Sinking

 

Net Debt

 

Fiscal Year

 

 

 

Maturities

 

Fund Values

 

Maturities(2)

 

   Maturities   

 

Fund Values

 

Maturities(2)

 

 

 

(millions of dollars)

 

(millions of dollars)

 

2007

 

 

$

—

 

 

 

$

—

 

 

 

$

—

 

 

 

$

—

 

 

 

$

—

 

 

 

$

—

 

 

2008

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

2009

 

 

1

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

2010

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

2011

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

1

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

2012 - 2016

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

2017 - 2021

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

2022 - 2026

 

 

10

 

 

 

—

 

 

 

10

 

 

 

—

 

 

 

—

 

 

 

—

 

 

2027 - 2031

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Other(3)

 

 

179

 

 

 

—

 

 

 

179

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

$

190

 

 

 

$

1

 

 

 

$

189

 

 

 

$

—

 

 

 

$

—

 

 

 

$

—

 

 

(1)      Debt payable in U.S. dollars was called during the 98/99 fiscal year.

(2)      Net debt maturities represent gross debt maturites minus projected sinking fund values at maturity, based on  earnings of 5% on sinking fund balances as of March 31, 2005. There is no provision made for future sinking fund installments or unamortized discount.

(3)      Includes Province miscellaneous Guarantees.

7



STATEMENT OF DIRECT FUNDED AND UNFUNDED DEBT

At March 31, 2006

 

 

 

 

 

 

 

 

Outstanding

 

 

 

 

 

 

 

Year of

 

Interest

 

March 31,

 

 

 

Series

 

 

 

Date of Maturity

 

Issue

 

Rate

 

2006

 

References

 

 

 

 

 

 

 

(percent)

 

($ millions)

 

 

 

Long-Term and Medium-Term
Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued by
Province of British Columbia:

 

 

 

 

 

 

 

 

 

 

 

 

 

BCSBR-H

 

October 15, 2006

 

1999

 

3.65

 

 

14

 

 

(1)(5)(8)

 

BCCG-2

 

December 1, 2006

 

1999/01

 

5.25

 

 

1,250

 

 

(1)(7)

 

BCCMTN-92

 

June 12, 2007

 

2002

 

Floating

 

 

150

 

 

(4)

 

BCSBR-I

 

October 15, 2007

 

2000

 

3.65

 

 

18

 

 

(1)(5)(8)

 

PRW

 

December 10, 2007

 

1987

 

10.14

 

 

1

 

 

(2)

 

BCCMTN-91

 

January 9, 2008

 

2001

 

5.25

 

 

110

 

 

(2)

 

BCEC-18

 

March 20, 2008

 

2002

 

5.30

 

 

300

 

 

(1)(7)

 

PRP-1

 

March 31, 2008

 

1996

 

8.18

 

 

11

 

 

(2)(12)

 

BCCD-V

 

June 9, 2008

 

1997

 

6.00

 

 

1,700

 

 

(2)

 

BCCD-6

 

December 18, 2008

 

2003

 

4.30

 

 

280

 

 

(2)

 

BCJC-2

 

January 15, 2009

 

1984

 

8.75

 

 

25

 

 

(1)(7)

 

BCCG-3

 

June 1, 2009

 

2002

 

5.70

 

 

750

 

 

(2)(7)

 

BCCD-Y

 

December 1, 2009

 

1999/01

 

6.25

 

 

750

 

 

(2)

 

BCCD-AA

 

August 23, 2010

 

2000

 

6.375

 

 

1,400

 

 

(2)

 

BCCD-D

 

February 21, 2011

 

1991

 

10.75

 

 

250

 

 

(2)

 

BCCD-K

 

January 9, 2012

 

1992

 

9.50

 

 

1,150

 

 

(2)

 

BCCMTN-85

 

January 9, 2012

 

1999/00

 

9.50

 

 

400

 

 

(2)

 

BCCD-AB

 

January 9, 2012

 

2001/02

 

5.75

 

 

1,000

 

 

(2)

 

BCEC-19

 

April 24, 2013

 

2003

 

5.50

 

 

350

 

 

(1)(7)

 

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)

 

BCCMTN-27

 

June 20, 2014

 

1994

 

8.50

 

 

50

 

 

(2)

 

BCCD-3

 

December 18, 2015

 

2003

 

5.15

 

 

150

 

 

(2)

 

BCCMTN-25

 

October 3, 2016

 

1994

 

9.125

 

 

45

 

 

(2)

 

BCCD-2

 

June 1, 2018

 

2003

 

5.60

 

 

200

 

 

(2)

 

BCCMTN-26

 

June 17, 2019

 

1994

 

9.00

 

 

50

 

 

(2)

 

BCCD-8

 

June 17, 2019

 

2004

 

5.30

 

 

225

 

 

(2)

 

BCCD-C

 

September 5, 2020

 

1990

 

10.60

 

 

600

 

 

(2)

 

BCCMTN-46

 

September 5, 2020

 

1995

 

10.60

 

 

20

 

 

(2)

 

BCCD-G

 

May 15, 2021

 

1996

 

9.95

 

 

296

 

 

(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)

 

8



 

BCCMTN-79

 

September 8, 2023

 

1999

 

6.40

 

 

50

 

 

(2)

 

BCEC-13

 

November 30, 2023

 

1993

 

7.875

 

 

350

 

 

(1)(7)

 

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, 2024

 

1996

 

8.00

 

 

110

 

 

(2)

 

BCCMTN-64

 

December 4, 2026

 

1996

 

7.00

 

 

40

 

 

(2)(9)

 

BCCMTN-74

 

December 4, 2026

 

1999

 

7.00

 

 

60

 

 

(2)(9)

 

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

 

5.45

 

 

200

 

 

(2)

 

BCCD-X

 

June 18, 2029

 

1998/99

 

5.70

 

 

2,285

 

 

(2)

 

BCCMTN-83

 

June 18, 2029

 

1999

 

5.86

 

 

250

 

 

(2)

 

BCCD-Z

 

June 18, 2031

 

2000/01

 

6.35

 

 

1,400

 

 

(2)

 

BCCD-7

 

June 18, 2035

 

2004

 

5.15

 

 

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-1

 

June 18, 2043

 

2003

 

5.25

 

 

150

 

 

(2)

 

BCCD-10

 

August 23, 2044

 

2004

 

5.75

 

 

100

 

 

(2)

 

Canada Pension Plan issues

 

1986 -2006

 

3.69-11.07

 

 

3,658

 

 

(2)(6)

 

Redemption premium re MTN-74/MTN64

 

1982

 

 

 

 

25

 

 

 

 

Other

 

 

114

 

 

(10)

 

Short-term Promissory Notes

 

 

1,562

 

 

 

 

Total Issues in Canadian Dollars

 

 

$

28,369

 

 

 

 

BCUSG-2

 

October 3, 2006

 

2001

 

4.625

 

 

750

 

 

(2)(7)

 

BCEUS-4

 

June 11, 2007

 

1997

 

7.125

 

 

500

 

 

(1)(7)

 

BCUSD-4

 

June 20, 2007

 

2002

 

Floating

 

 

150

 

 

(4)(7)

 

BCEUS-6

 

December 20, 2007

 

2002

 

5.250

 

 

250

 

 

(1)(7)

 

BCUSG-1

 

October 29, 2008

 

1998/01

 

5.375

 

 

750

 

 

(2)(7)

 

BCEUS-7

 

June 25, 2009

 

2002

 

5.00

 

 

250

 

 

(1)(7)

 

BCUSG-3

 

May 30, 2013

 

2003

 

4.30

 

 

500

 

 

(2)(7)

 

BCEMTN-22

 

October 28,2013

 

1998

 

Floating

 

 

100

 

 

(4)

 

BCUSD-2

 

January 15, 2026

 

1996

 

6.50

 

 

500

 

 

(2)(7)

 

BCUSD-3

 

September 1, 2036

 

1996

 

7.25

 

 

300

 

 

(2)(7)

 

Short-term Promissory Notes

 

 

408

 

 

 

 

Total Issues in U.S. Dollars*

US

 

$

4,458

 

 

 

 

Exchange Premium (Including Hedge)

 

 

1,692

 

 

 

 

U.S. Issues at Cdn. Dollar Equivalent

C

 

$

6,150

 

 

 

 

BCEMTN-16

 

June 19, 2007

 

1997

 

3.50

 

 

5,000

 

 

(1)(11)

 

BCEMTN-23

 

March 1, 2010

 

2000

 

1.855

 

 

7,000

 

 

(1)

 

BCEMTN-21

 

September 16, 2010

 

1998

 

2.07

 

 

10,000

 

 

(1)(11)

 

Total Issues In Japanese Yen

¥

 

21,000

 

 

 

 

Exchange Premium (Including Hedge)

 

 

(21,737

)

 

 

 

Japanese Issues at Canadian Dollar Equivalent**

C

 

$

263

 

 

 

 

BCSFR-4

 

March 26, 2008

 

2002

 

2.125

 

 

400

 

 

(1)(7)

 

Total Issues in Swiss Francs

SF

 

400

 

 

 

 

9



 

Exchange Premium (Including Hedge)

 

 

18

 

 

 

 

Swiss Franc Issues at Canadian Dollar Equivalent**

C

 

$

418

 

 

 

 

BCEFF-1

 

January 30, 2007

 

1996

 

6.25

EURO

 

229

 

 

(1)(7)

 

BCEFF-2

 

July 15, 2009

 

1997

 

5.875

 

 

305

 

 

1)(7)

 

BCEDM-1

 

July 21, 2010

 

1998

 

5.125

 

 

383

 

 

(1)(7)

 

Total Issues in Euro***

EURO

 

917

 

 

 

 

Exchange Premium (Including Hedge)

 

 

664

 

 

 

 

Euro Issues at Canadian Dollar Equivalent**

C

 

$

1,581

 

 

 

 

Gross Direct Debt Issued by the Province
(In Canadian Dollar Equivalents)

C

 

$

36,781

 

 

 

 

                  * Payable and expressed in U.S. dollars. Debt payable in US $3,477 million has been hedged to Cdn $4,999 million. Debt payable in U.S. $300 million has been hedged to JP¥36,075 million. 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

      *** On January 1, 2002, French Franc was converted into Euro at 1 Euro = 6.55957 FRF and Deutschemark was converted into Euro at 1 Euro = 1.95583 DEM

10



STATEMENT OF DIRECT FUNDED AND UNFUNDED DEBT
At March 31, 2006

 

 

Amount
Outstanding
March 31, 2006

 

 

 

($ millions)

 

Gross Direct Debt issued by the Province(1) (in Canadian Dollar Equivalents)

 

 

 

36,781

 

Less — Fiscal Agency Borrowings on behalf of:

 

 

 

 

 

Warehouse Borrowing Program

 

—

 

 

 

BC Transportation Financing Authority

 

2,968

 

 

 

British Columbia Buildings Corporation

 

405

 

 

 

British Columbia Housing Management Commission

 

61

 

 

 

British Columbia Hydro and Power Authority

 

7,643

 

 

 

British Columbia Institute of Technology

 

24

 

 

 

British Columbia Transit

 

106

 

 

 

British Columbia Transmission Corporaton

 

30

 

 

 

College of New Caledonia

 

3

 

 

 

College of the Rockies

 

3

 

 

 

Douglas College

 

1

 

 

 

Home Owner Protection Office

 

31

 

 

 

Improvement Districts

 

7

 

 

 

Selkirk College

 

2

 

 

 

Simon Fraser University

 

14

 

 

 

Thompson Rivers University

 

3

 

 

 

University of British Columbia

 

70

 

 

 

University of Northern British Columbia

 

15

 

 

 

University of Victoria

 

10

 

 

 

 

 

11,396

 

11,396

 

Gross Direct Debt

 

 

 

25,385

 

Add — Unrealized Foreign Exchange Gains

 

69

 

 

 

Less — Unamortized Discount

 

151

 

 

 

— Government Sinking Funds(1)

 

2,571

 

 

 

— Bonds held in the Consolidated Revenue Fund

 

7

 

2,660

 

Total Net Direct Debt

 

 

 

22,725

 

Gross Fiscal Agency Reloaned Debt

 

 

 

11,396

 

Less — Gross Fiscal Agency Debt

 

 

 

11,396

 

Gross Fiscal Agency Debt for Warehouse Borrowing Program Purposes

 

 

 

—

 

Less — Unamortized Discount/(Premium)

 

—

 

—

 

Total Net Fiscal Agency Debt for Warehouse Borrowing Program Purposes

 

 

 

—

 

Gross Fiscal Agency Debt

 

 

 

11,396

 

Add — Unamortized Premium

 

32

 

 

 

— Unrealized Foreign Exchange Gains

 

69

 

 

 

Less — Government Sinking Funds

 

1,488

 

1,387

 

Total Net Fiscal Agency Debt

 

 

 

10,009

 

Total Net Direct and Fiscal Agency Debt, Warehouse Borrowing Program Debt

 

 

 

32,734

 

Less — Warehouse Borrowing Program Investments Available to Paydown Warehouse Borrowing Program Debt

 

 

 

—

 

Total Net Direct and Fiscal Agency Debt

 

 

 

32,734

 

(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.

11



NET GUARANTEED DEBT

At March 31, 2006

 

 

 

 

 

 

 

 

Amount

 

Issuer & Series

 

 

 

Year of
Maturity

 

Year of
Issue

 

Interest
Rate

 

Outstanding(1)
March 31/2006

 

 

 

 

 

 

 

(percent)

 

(millions of

 

 

 

 

 

 

 

 

 

Cdn. dollars)

 

British Columbia Hydro and Power Authority

 

2024

 

2004

 

5.54

 

 

10

 

 

Municipalities, Improvement Districts and Other Local Government Entities

 

2006-2007

 

1980-1986

 

10.12-15.75

 

 

1

 

 

Plus — Other Guaranteed Debt(2)

 

 

 

 

 

 

 

 

178

 

 

 

 

 

 

 

 

 

 

 

189

 

 

Less — Provisions for Probable Payout

 

 

 

 

 

 

 

 

9

 

 

Total Net Guaranteed Debt

 

 

 

 

 

 

 

 

180

 

 

(1)      Total net of sinking funds

(2)      Includes outstanding loan guarantees of student assistance loans, loans to agricultural producers and guarantees issued under economic development assistance programs.

12



NON-GUARANTEED DEBT
As At March 31, 2006

 

 

(millions of

 

 

 

Cdn. dollars)

 

Taxpayer-Supported Debt

 

 

 

 

 

BC Transportation Financing Authority

 

 

84

 

 

Canadian Blood Services

 

 

3

 

 

Columbia Basin Trust

 

 

16

 

 

Homeowner Protection Office

 

 

79

 

 

Provincial Rental Housing

 

 

128

 

 

Schools

 

 

19

 

 

Post-Secondary

 

 

539

 

 

Health facilities

 

 

305

 

 

Other(1)

 

 

1

 

 

Total Taxpayer-Supported Non-Guaranteed Debt

 

 

1,174

 

 

Self-Supported Debt

 

 

 

 

 

Commercial Crown Corporations and Agencies

 

 

 

 

 

British Columbia Liquor Distribution

 

 

5

 

 

British Columbia Transmission Corporation

 

 

7

 

 

Columbia River Power Projects(2)

 

 

247

 

 

Total Self-Supported Non-Guaranteed Debt

 

 

259

 

 

Total Non-Guaranteed Debt

 

 

1,433

 

 

(1)      Includes debt of the British Columbia Transit, Community Living British Columbia, and Oil & Gas Commission.

(2)      Joint ventures of Columbia Power Corporation and Columbia Basin Trust.

13



REFERENCES TO STATEMENTS OF DEBT

  1)         Interest payable annually.

  2)         Interest payable semi-annually.

  3)         Interest payable monthly.

  4)         Interest payable quarterly.

  5)         Interest rate reset semi-annually.

  6)         Pursuant to provisions for investment of Canada Pension Plan 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 (CPP issues).

  7)         Callable by the issuer if taxation laws requiring additional payments are imposed or levied.

  8)         Redeemable on October 15 or April 15 prior to maturity at par upon presentation of the bond.

  9)         Coupon will be 5.4% to December 4, 2002 and 7% thereafter to maturity (BCCMTN-64/MTN74).

10)        Including the Province’s direct capital leases and the assumption by the Province of debt obligations of David Thompson University Centre.

11)        Coupon is payable in US dollars. (EMTN-16 & EMTN-21).

12)        Redeemable at option of the issuer on January 1, 2007 on 90 days’ notice. (PRP-1)

14



CONSOLIDATED FUNDED AND UNFUNDED DEBT OF THE PUBLIC SECTOR

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

 

Unamortized

 

Unrealized foreign

 

Sinking Fund

 

Oustanding

 

 

 

Gross(1),(2)

 

Discount

 

exchange gains

 

Investments(2)

 

Net

 

 

 

(in Millions of Cdn dollars)

 

Direct and Guaranteed Funded and Unfunded Debt of the Province

 

 

$

36,964

 

 

 

$

119

 

 

 

$

(138

)

 

 

$

4,060

 

 

 

$

32,923

 

 

Plus: Non-Guaranteed Debt

 

 

1,445

 

 

 

12

 

 

 

—

 

 

 

—

 

 

 

1,433

 

 

Total Consolidated Funded Debt of the Public Sector of British Columbia

 

 

$

38,409

 

 

 

$

131

 

 

 

$

(138

)

 

 

$

4,060

 

 

 

$

34,356

 

 

(1)      Balance does not include the Provision for Probable Payout ($9 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.

15



CANADIAN FOREIGN EXCHANGE RATE AND
INTERNATIONAL RESERVES

Recent high and low exchange rates for the Canadian dollar in terms of United States cents are as follows for the calendar year ended December 31:

 

 

2001

 

2002

 

2003

 

2004

 

2005

 

High

 

67.11

 

66.13

 

77.38

 

84.69

 

87.51

 

Low

 

62.53

 

61.99

 

63.50

 

71.41

 

78.53

 

 

On March 31, 2006, the noon spot rate for the U.S. dollar was 85.68

Source: Bank of Canada

The total of Canada’s official international reserves on December 31, 2001 to 2005 are as follows:

December 31

 

2001

 

2002

 

2003

 

2004

 

2005

 

(US$ Millions)

 

$

34,248

 

$

37,169

 

$

36,268

 

$

34.467

 

$

33,018

(1)

 

Source: Bank of Canada

(1)      US$16,842 million, US$56 million in gold, US$1,401 million in the International Monetary Fund Reserve, US$897 million in Special Drawing Rights and US$13,822 million in other foreign currencies.

16



TRADE BALANCE

Exports and Imports:

Based on the provincial economic accounts 2005 preliminary estimates (April 2006), the Province’s exports of goods and services totalled $73.7 billion during the 2005 calendar year. International exports comprised $47.9 billion (65%) of the Province’s total exports, and represented 9.2% of Canada’s total international exports; inter-provincial exports accounted for $25.8 billion (35%) of the Province’s total exports. The Province’s imports of goods and services totalled $78.7 billion, consisting of $43.8 billion (55.6%) international imports and $34.9 billion (44.4%) inter-provincial imports. The Province’s international imports accounted for 9.4% of Canada’s total international imports. The Province registered a trade deficit of $5 billion, which consists of a $4.1 billion surplus in trade from abroad and a $9.1 billion deficit accruing from inter-provincial trade. In 2004, the Province registered an overall deficit of $4.9 billion. Although the Province had a $4.1 billion surplus in international trade, the international trade surplus was overtaken by an $8.9 billion deficit in inter-provincial trade.

International exports of goods originating from the Province, computed by BC Stats using customs based data, were $34.1 billion in 2005, an increase of 10% compared to $31 billion in 2004. This increase was largely driven by the increase in the value of energy products. Increases occurred in 2005 in the value of exports of energy products (+72.2%), metallic mineral products (+28.6%), machinery and equipment (+7.2%), plastics and articles of plastics (+4.3%) and fish products (+1.1%). However, decreases occurred in the value of exports of apparel and accessories (-11.2%), agriculture and food products other than fish (-7.7%), pulp and paper products (-7.5%) and wood products (-5.7%).

The United States is the Province’s principal international export market, accounting for 64.8% of the international exports of goods in 2005.

Source: Statistics Canada
BC Stats

17