Newfoundland and Labrador is looking to Europe to see if it can lower its borrowing costs.

The province will launch a European borrowing program today, listing bonds on the London Stock Exchange. Premier Andrew Furey and Finance Minister Siobhan Coady launched the program at a news conference from London this morning.

Government will have to refinance about $8 billion over the next ten years and even a slight decrease in the interest rate could result in significant savings.

The initial offering is $1 billion Euros, but that can be adjusted either way at any time. Most of the province’s bonds are currently held in the domestic market.

Premier Furey says they will not borrow on the European market unless it benefits taxpayers.

He says our story is very attractive on the global stage because of our natural resources including oil and gas, minerals and hydro.

Larry Short, Senior Investment Advisor with Short Financial, a branch of IA Private Wealth in St. John’s, says the move could result in benefits as other jurisdictions in Canada have gone a similar route.

He says it would have been a really smart idea about four years ago when interest rates in Europe were actually negative but there still may very well be an advantage.