There's a new name coming in the provincial bond market, as Yukon Development Corp. launches a $100-million bond issue.
The territorial agency is selling 30-year bonds in its first-ever debt issue, tapping a market that's seen strong investor interest any variation on government debt that offers extra juice, in the former of higher-than-normal interest rates.
TD Securities is leading the offering. Yukon Development plans a conference call on Wednesday to pitch the issue.
As a crown corporation, Yukon Development debt will qualify for inclusion in provincial bond indices, according to a report late Wednesday from TD Waterhouse.
Another provincial agency, single-A rated Financement Quebec, sold $500-million of bonds on Wednesday. The new bonds represented the re-opening of an issue that matures in 2016 and offers a 3.5 per cent interest rate.
National Bank Financial led the Financement Quebec offering, and the deal was done at a slight discount to face value, so buyers of the new bonds will receive a 3.835 per cent yield, or 85 basis points over the comparable government of Canada debt. There are now $1-billion of these bonds outstanding.