Ottawa, August 28, 2009
Archived - Canada Plans US-Dollar Global Bond Issue
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The Honourable Jim Flaherty, Minister of Finance, today announced that the Government of Canada plans to issue a US-dollar-denominated global bond in the near future, subject to market conditions. This will be the Government's first foreign currency global bond issue in more than a decade.
The US-dollar bond issue will provide funds to supplement Canada's foreign exchange reserves and to meet foreign currency requirements to support current and anticipated lending by the International Monetary Fund.
Canada holds its foreign exchange reserves in the Exchange Fund Account (EFA). EFA assets provide foreign currency liquidity and support the promotion of orderly conditions for the Canadian dollar in foreign exchange markets. Funds for the EFA can be raised through cross-currency swaps of Canadian-dollar borrowings, foreign-currency-denominated debt issues and outright purchases of foreign currency. In recent years, the Government has relied primarily on cross-currency swaps to finance the EFA. The global bond issue will prudently diversify the Government's sources of foreign currency financing.
For further information, media may contact:
Office of the Minister of Finance
Department of Finance
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