Tuesday, September 22, 2009

Alberta government starts selling bonds to fund infrastructure projects

CALGARY — Alberta is following through on a promise to raise money for infrastructure projects by borrowing money through provincial bonds for the first time in more than a decade.

Alberta Finance spokesman Bart Johnson says $600 million worth of the provincial bonds were issued on the Canadian capital markets Monday morning. He said the bonds sold completely within half an hour.

The government said in this year's budget it would use bonds to raise $3.3 billion over three years.

It last sold provincial bonds in 1997 before raking in massive surpluses for much of the last decade due to soaring oil and natural gas prices.

Alberta is also planning to eventually raise more money for capital projects by issuing personal savings bonds.

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