2008 Bonds

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The DCBC issued bonds in 2008 to finance the construction of the bridge. The amount, known in the Concession Agreement as the Base Debt, was $165,438,596.56. The GNWT assumed liability for these bonds when it took over the Bridge project in 2010.

These are real return bonds, where the repayment is linked to inflation. So the listed 3.17% coupon interest rate is actually more like something over 5%, depending on what inflation is like over the next 35 years. In current dollars (which lets us ignore the inflation adjustments), the $165 million in bonds will cost about $297 million to repay, an average of $8.5 million/year). This doesn't include the various overruns in the construction budget which the GNWT is funding, currently around $26 million.

The financing was arranged by TD Securities, and the bonds were purchased by the Ontario Teachers' Pension Fund and Sun Life Financial. The bonds pay interest-only until December 1, 2011, at which time semi-annual amortization payments will be made until June 1, 2046.

A bond repayment schedule (based on information provided by the Department of Transportation) can be seen here.