For a market that has been largely ignored by the Canadian provinces for many years, one borrower has now decided that it likes the British fixed income market so much that it has priced a second deal this month. 

On Tuesday the province of Ontario returned to the market with a GBP 100 million floating rate offering. The terms for that offering — it matures on Nov. 20, 2020 — were the same as what the province paid for a GBP 400 million offering done earlier this month. 

According to the Ontario Financing’s web site, “the bond pays a Floating, 3m£L +9bps coupon (quarterly).” The GBP 400 million borrowing was Ontario’s first in that market since 2011. 

The only difference between the two transactions was the choice of lead managers. This time around, TD and RBC were given the task of rounding up buyers. On the earlier transaction, Merrill Lynch and RBC were awarded the mandate. 

Aside from Ontario, so far this year, Alberta, Quebec and Manitoba have all borrowed in the British market.

Financial Post
bcritchley@postmedia.com