Ontario's Borrowing Program
| 2019 Budget | In-Year Change | Interim Adjusted to March 31, 20201 | Plan | |
|---|---|---|---|---|
| ($ Billions) | 2019–20 | 2019–20 | 2019–20 | 2020–21 |
| Deficit/(Surplus) | 10.3 | (1.1) | 9.2 | 20.5 |
| Investment in Capital Assets | 11.6 | 0.0 | 11.6 | 10.4 |
| Non-Cash Adjustments | (7.7) | 0.7 | (7.0) | (9.2) |
| Loans to Infrastructure Ontario | 0.2 | (0.0) | 0.2 | 0.3 |
| Other Net Loans/Investments | 0.7 | (0.3) | 0.3 | 1.2 |
| Debt Maturities/Redemptions | 27.5 | (0.1) | 27.4 | 26.6 |
| Total Funding Requirement | 42.5 | (0.8) | 41.7 | 49.7 |
| Decrease/(Increase) in Short-Term-Borrowing | (1.2) | (1.8) | (3.0) | (2.0) |
| Increase/(Decrease) in Cash and Cash Equivalents2 | (5.3) | (1.5) | (6.8) | – |
| Pre-borrowing in 2019–20 | – | 7.6 | 7.6 | (7.6) |
| Total Long-Term Public Borrowing | 36.0 | 3.5 | 39.5 | 40.1 |
1 Pre-borrowing in 2019–20 was projected at $4.1 billion, and the total long-term public borrowing was $36.0 billion in 2019–20 and $43.6 billion in 2020–21
at the time of the March 2020 Economic and Fiscal Update. These amounts have been updated to reflect long-term borrowing completed to March 31, 2020.
2 Excludes 2019–20 pre-borrowing.
Note: Numbers may not add due to rounding.
June 1, 2020
- Investor Presentation (PDF) – NEW!
Borrowing Program
2020–21 Borrowing Program
| Total Long-Term Public Borrowing: | $40.1B |
|---|---|
| Borrowed as of | $17.2B |
Euro Bonds $1.6B
Pound Sterling Bonds
$1.7B
$1.7B
U.S. Dollar Bonds $2.4B
Canadian Dollar Syndicated Bonds $11.5B
Note: Numbers may not add due to rounding.
The Province has issued $20.8 billion since resuming the borrowing program following the March 2020 Economic and Fiscal Update.
Ontario Bonds
- Secondary market liquidity with a wide range of offerings provide extensive investment and trading opportunities across the yield curve
- Ontario accounted for 67.2 per cent of Canadian provincial bond trading in 2019
- Attractive spreads provide opportunities for investors to achieve higher returns
- Benchmark Canadian provincial borrower
- Primary focus on Canadian dollar borrowing with likely issuance in U.S. dollars and Euro
| Credit Ratings (Long-Term/Short-Term) | |
|---|---|
| Moody’s Investors Service | Aa3 / P-1 |
| Fitch | AA- / F1+ |
| DBRS Morningstar | AA (low) / R-1(mid) |
| S&P | A+ / A-1 |
Liquidity and Short-Term Borrowing Capacity
- The Province has large liquid reserve levels to withstand periods of financial market volatility, such as currently being experienced.
- As of June 2, 2020, liquid reserve levels were $42.5 billion.
Average Unrestricted Liquid Reserve Levels
($ Billions)
