Municipal Finance Authority of British Columbia MFABC

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Helping BC Communities Grow
Municipal Finance Authority of British Columbia
(MFABC) Leasing Program
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What is MFABC?
100 owned and operated by B.C.s local
governments
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Ownership

• Each local government has one share
• Each local government receives the same lending
  and interest rates

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Trustees Where are they from?
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Timeline After 36 Years
2006
1971
- L/T Debt 5.1 Billion - S/T Debt 290
Million - Investments PIF 1.8 Billion
S/F 1.3 Billion - Leasing 65 Million -
Education 100,000
- L/T Debt 50 Million
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The Eternal Question

• Question Does Size Matter?

Answer Yes, Size DOES Matter!
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BANK
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(No Transcript)
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Ratings Scale
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Funding How Does the MFA get its Money?

• MFABCs credit rating allows it to borrow long
• term and short term monies at rates below those
• available to Canadian Chartered Banks.
• Bank Prime 6.00
• MFABC 5.00 Leasing Rate

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Short Term Loans

• MFABC raises short term loan monies each night
• equal to amount of leases outstanding

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Can Payout Early No Penalties

• MFA does not borrow the money to fund the leases
• any longer

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Interest Rates 10 year (fixed rate)

• Chartered Banks 4.95
• AAA Ontario Municipalities 4.80
• European AAA Borrowers (KFW) 4.74
• Province of Ontario (largest province) 4.70
• MFA-BC 4.66
• All local governments receive this rate
  regardless of size

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Leasing Program Usage OverallJanuary, 2000 -
December, 2006
millions
2004
2001
2002
2005
2000
2003
2006
Monthly Usage
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MFA Leasing Program
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20 yr Lease - 100,000
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20 yr Lease - 100,000
Annual Payment Totals
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20 yr Lease - 300,000
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20 yr Lease - 300,000.00
Annual Payment Totals
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20 yr Lease - 500,000
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20 yr Lease - 500,000
Annual Payment Totals
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THANK YOU!

• 737 Fort Street
• Victoria, BC V8W 2V1
• Contact Jane [phone] x.226
• E-mail Jane jane_at_mfa.bc.ca
• Fax [phone]