Hydro Bonds go on sale - Check out the rates

May 20, 2011

MANITOBA HYDRO BOND INTEREST RATES ANNOUNCED

Finance Minister Rosann Wowchuk today announced the interest rates for Manitoba Hydro Bonds, Series 11, on sale May 24 to June 7 throughout the province.
Rates on 2011 bonds

• The interest rate for the five-year floating rate bond has been set for the initial year at 1.75 per cent.  The bonds will pay interest on an annual basis and will be redeemable annually.  The interest rate on the bonds will be reset annually.
•  The interest rate for the three-year fixed rate bond has been set at 2.3 per cent.  The bonds will pay interest on an annual basis and will not be redeemable prior to maturity.
• The interest rate for the five-year fixed rate bond has been set at 2.75 per cent.  Purchasers can choose either annual or compound interest and the bonds will not be redeemable prior to maturity.

Rates on outstanding floating rate bonds

• The interest rate for all outstanding Manitoba Hydro and Manitoba Builder floating rate bonds which are adjustable and redeemable annually has been set at 1.75 per cent effective June 15.

Hydro Bonds are on sale from May 24 to June 7 at banks, trust companies, credit unions, caisses populaires and investment dealers throughout Manitoba.  The finance minister may terminate the selling period or reduce the maximum individual purchase amount upon 24 hours notice.  The bonds may only be purchased by residents of Manitoba or by Manitoba-based trusts, estates, corporations or other organizations having permanent establishments in Manitoba.
Redemptions

• Hydro Bonds Series 9 five-year fixed and five-year floating rate bonds and Manitoba Builder Bonds Series 10 three-year fixed rate bonds mature on June 15 and will be redeemed by direct deposit. 
• Builder Bonds Series 10, 11 and 12 floating rate bonds and Hydro Bonds Series 10 floating rate bonds may be redeemed without penalty for their full principal amount plus interest annually during the redemption periods by providing written notice to the registrar or by telephoning the registrar at 1-866-313-1872 (Valiant Trust Company) on or before June 9.

Further information may be obtained at the bond line at 1-800-565-0350 (toll-free) or the website at www.hydro.mb.ca/about_us/hydro_bonds.shtml.

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