The corporate bond market continues to soak up new issues, with utility Gaz Metro selling $100-million of debt on Monday.
Quebec's largest natural gas distributor sold ten-year first mortgage bonds, with proceeds earmarked for paying down an existing mortgage bond issue that is coming due. BMO Nesbitt Burns led the underwriting.
The Gaz Metro debt is rated single-A, a strong credit rating, and pay 4.93 per cent interesting, which is a 140 basis point premium to the comparable government of Canada bond.
Recent months have seen a flurry of bond issues from Canadian companies that want to borrow at relatively low interest rates.
Andrew Willis