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Canada Infrastructure Bank Provides $1-Billion Loan for BC Ferries’ China-Built Vessels

It will reduce BC Ferries’ borrowing costs by about $650 million over the loan’s term.

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BC Ferries is buying four new ships from China with loans from the Canada Infrastructure Bank.

Overview

  • The Canada Infrastructure Bank will lend BC Ferries $1 billion at a 1.8 per cent annual rate to support the purchase of four new vessels.
  • Up to $690 million of the financing is dedicated to building the hybrid ferries at China Merchants Industry Weihai Shipyards.
  • A further $310 million is reserved for shore-power infrastructure to enable future conversion to full battery-electric operation.
  • BC Ferries expects the low-rate loan to cut its long-term interest charges by roughly $650 million compared with market borrowing.
  • Transport Minister Chrystia Freeland has voiced “consternation and disappointment” and Conservative MPs are calling for a Commons committee review of the federal backing for China-built ships.