BC Ferries finalizes $108 million loan agreement

    VICTORIA, Jan. 20 /CNW/ - BC Ferries has entered into a $108 million loan
agreement with KfW IPEX-Bank GmbH, a subsidiary of KfW Bankengruppe, a German
export credit bank, at an interest rate of 2.95%.
    The principal amount of the loan will be repaid over the twelve-year term
of the loan.
    "We are pleased that BC Ferries was able to complete this significant
financial transaction at favourable terms despite the continuing uncertainty
in global financial markets," stated BC Ferries' Chief Financial Officer Rob
    The proceeds from the loan will be used to finance the purchase of the
Northern Expedition being constructed by Flensburger Schiffbau-Gesellschaft
mbH & Co. KG in Germany. Advancement of the funds under the loan will align
with BC Ferries' conditional acceptance of the vessel from the ship builder at
its yard, which is expected to take place January 29, 2009. The vessel will be
transported by the ship builder to Vancouver, British Columbia, where final
acceptance will take place.
    BC Ferries' credit ratings were recently confirmed by both Standard &
Poor's Ratings Services and DBRS Limited at A- and A (low), respectively. In
both cases, the rating agencies have indicated the rating trend is positive
for the company.

    %SEDAR: 00020627E

For further information:

For further information: Media Contact: BC Ferries, Media Relations,
Victoria: (250) 978-1267

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British Columbia Ferry Services Inc.

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