Credit Union Central of British Columbia

Credit Union Central of British Columbia

December 21, 2006 10:00 ET

Credit Union Central of British Columbia Completes $50-Million Subordinated Debt Issue

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 21, 2006) - Credit Union Central of British Columbia (Central) has completed a $50-million issue of 10-year subordinated fixed-floating notes, marking the first time that Central has issued subordinated debt. Central will use the proceeds of the issue as regulatory capital.

The notes were sold (at a spread of 59 basis points over the corresponding five-year Government of Canada security) as a private placement by RBC Capital Markets and will pay a coupon of 4.523 per cent until December 21, 2011, and then will pay a quarterly floating rate of interest to maturity at 90-day Banker's Acceptance Rates plus one per cent. The notes are redeemable at Central's option at par on December 21, 2011, subject to prior regulatory approval.

The issue has been awarded an "A" credit rating by both Dominion Bond Rating Service and Standard & Poor's.

Rowland Kelly, Central's Interim President and CEO, states that: "The issuance of sub-debt into Canadian capital markets is a logical extension of Central's existing capital market activities and represents access to a new source of capital that supports ongoing system liquidity management."

Central is the central financial and funding facility for the B.C. credit union system. It employs a diverse range of funding sources, including a medium-term note program, short-term commercial paper, credit union and cooperative deposits, and securitization activities.

The B.C. system comprises all 51 credit unions in the province. They had combined assets of $37.7 billion as of September 30 this year and serve more than 1.5 million members from over 350 locations.

Contact Information

  • Credit Union Central of British Columbia
    Rowland Kelly
    Interim President and CEO
    (604) 737-5027
    Credit Union Central of British Columbia
    Charles Milne
    Associate Vice-President, Treasury and Funding Services
    (604) 730-6307