NORTH BATTLEFORD - City council in North Battleford has passed a bylaw to establish a $7.5 million debt for a sanitary sewer project.
The bylaw was passed unanimously at a special council meeting held at noon Dec. 20. The city has accepted a tender offer from RBC for a 25-year interest rate swap with a 15-year banker’s acceptance and quarterly payments, for an all-in rate of 2.94 per cent.
Administration also recommended a single draw for the full amount of the $7.5 million loan in January, given the current market conditions.
Because of the volatility of swap interest rates there is the possibility the 2.94 per cent rate could fluctuate. Council has approved contracting at an all-in rate not to exceed 3.44 per cent.
RBC was one of two tenders that came back in a capital financing RFP posted \Nov. 15. Two tenders were received, from RBC and from Scotiabank, with RBC coming out ahead.
