About the NSMFC

NSMFC issues pooled debentures that provide low-cost, long-term capital financing for municipal capital projects. The NSMFC issues in capital markets twice a year, generally in the spring and fall. On occasion the NSMFC will do a single issue, provided the size is large enough.

The issuing of pooled debentures reduces costs for municipalities in a number of ways:

  • Municipalities do not incur issuing costs and legal costs associated with placing an issue.

  • Municipalities avoid the administrative costs of tracking the debentures.

  • Municipalities do not have to issue information slips for tax purposes.

  • The size of a pooled debenture is generally more attractive to investors than a number of smaller single issues.

  • NSMFC debentures are traditionally guaranteed by the Province of Nova Scotia; this allows the NSMFC to benefit from the Province of Nova Scotia's credit rating. The interest rate charged to the NSMFC is a number of basis points higher than the cost to the province to borrow, depending on market conditions.

The NSMFC also offers other programs beyond traditional long-term capital financing. These include providing short-term financing and bridge financing for infrastructure projects, administering Federation of Canadian Municipalities (FCM) Green Municipal Funds loans, and partnering with municipalities and professional associations to build financial management capacity in local governments.




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Contact Us /2004-Oct-25.

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