HALIFAX, Nova Scotia -
Today, at an event hosted by the Federal Government, Emera (TSX: EMA)
announced that with the backing of a Federal Loan Guarantee, Nova Scotia
electricity customers will save approximately $325 million over the life
of the Maritime Link Project.
This is the result of Maritime Link Financing Trust successfully raising
$1.3 billion at a coupon interest rate of 3.5% for a period of 38 years.
Once all related costs are included, the effective all in debt financing
rate will be approximately 3.85%. The funds raised will be used for the
development and construction of the Maritime Link.
This is a major milestone for the Maritime Link Project and demonstrates
the tremendous benefit of a Federal Loan Guarantee for Nova Scotia
“Today is a great day for Nova Scotia’s electricity customers,” said
Chris Huskilson, Emera’s President and CEO. “With financing now in
place, Phase 1 of the Lower Churchill Project and the Maritime Link will
become game-changers for Atlantic Canada and beyond.”
The Government of Canada committed to a Federal Loan Guarantee in 2011.
Terms were finalized in November 2012. With the issuance of the
guarantee, Nova Scotia electricity customers will now have the full
benefit of the Federal Government’s AAA credit rating.
Maritime Link Financing Trust was created by Emera to facilitate the
issuance of the Federal Loan Guarantee. The Trust has issued
approximately $1.3 billion in bonds. This is the maximum that can be
borrowed under the terms of the Federal Loan Guarantee agreement. The
bonds will mature on December 1st, 2052.
“I would like to thank the Government of Canada, as well as the
Governments of Nova Scotia, and Newfoundland and Labrador, as well as
our partners, Nalcor Energy, for their commitment and support for this
legacy project,” said Huskilson. “We are well on our way to helping
transform the electricity sector for the entire region.”
Forward Looking Information
This news release contains forward-looking information with respect to
Emera. By its nature, forward-looking information requires Emera to make
assumptions and is subject to inherent risks and uncertainties. There is
significant risk that predictions, forecasts, conclusions and
projections that constitute forward-looking information will not prove
to be accurate, that Emera’s assumptions may not be correct and that
actual results may differ materially from such forward-looking
information. Detailed information about these assumptions, risks and
uncertainties is included in Emera’s securities regulatory filings,
which can be found on SEDAR at sedar.com.
Emera Inc. is an energy and services company with $8.88 billion in
assets and 2013 revenues of $2.2 billion. The company invests in
electricity generation, transmission and distribution, as well as gas
transmission and utility energy services. Emera's strategy is focused on
the transformation of the electricity industry to cleaner generation and
the delivery of that clean energy to market. Emera has investments
throughout northeastern North America, and in four Caribbean countries.
Approximately 90% of the company's reported net income in 2013 came from
regulated investments. Emera common and preferred shares are listed on
the Toronto Stock Exchange and trade respectively under the symbol EMA,
EMA.PR.A., EMA.PR.C., and EMA.PR.E. Additional information can be
accessed at emera.com,
or on SEDAR at sedar.com.
About The Maritime Link Project
The Maritime Link is a proposed 500 MW high voltage direct current
(HVdc) transmission line between Nova Scotia and Newfoundland and
Labrador. The Project will include two 170 km subsea cables across the
Cabot Strait, with almost 50 km of overland transmission in Nova Scotia
and close to another 300 km of overland transmission on the island of
Newfoundland. To learn more visit www.emeranl.com.
Source: Emera Inc.
Dina Bartolacci Seely,
Jill Hennigar, 902-428-6486