Notes to the Consolidated Financial Statements
outstanding (2019 - $1,638 million), including $264 million in temporary loans (2020 - $279 million), leaving $236 million of remaining short-term borrowing capacity (2020 - $221 million). The Corporation’s short-term debt is unsecured, with an average interest rate of 0.2 per cent (2020 - 1.3 per cent). The Corporation borrows all its capital, with the exception of occasional overnight loans from the Toronto-Dominion Bank, from the Province. The Corporation’s borrowing requirements constitute a minor portion of the Province’s total borrowings, and given the Province’s strong credit rating, the Corporation was able to acquire all its funding requirements during the period. The Corporation does not have share capital. However, it has received advances from CIC, which reflect an equity investment in the Corporation, to form its equity capitalization. The Corporation monitors capital on the basis of the proportion of debt in the capital structure, with a long-term target range of 58.0 per cent to 63.0 per cent. The purpose of this strategy is to ensure the Corporation’s debt is self-supporting and does not adversely affect the Province’s access to capital markets. The debt ratio is calculated as net debt divided by total capital at the end of the fiscal year as follows:
(millions)
2021
2020
$
1,485
Long-term debt Short-term debt
$
1,359
264
279
(136)
Debt retirement funds Cash and cash equivalents
(136)
-
(1)
1,613
1,501
Total net debt Equity advances Retained earnings
72
72
1,084 2,769 58.3%
1,024 2,597 57.8%
$
Total capital
$
Debt ratio
The Corporation’s objectives, policies and processes for managing its capital were consistent with the prior period. The Corporation complied with all externally imposed requirements for its capital throughout the period, which include compliance with the approved borrowing limits for short-term and long-term debt, and the annual investment requirement to the debt retirement funds. 5. TRADE AND OTHER RECEIVABLES
(millions)
2021
2020
$
45
Unbilled revenue Trade receivables Other receivables
$
48 85 29
101
30
176
162
(11)
Credit loss allowance
(7)
$
165
$
155
p.63
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