Ottawa, March 4, 2011
Archived - Canada Wins International Prize for Top Bond Deal of 2010
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Thanks to Canada’s prudent fiscal management, a Canadian bond issue has been rated the overall bond deal of 2010 by EuroWeek, a leading financial industry publication. The accolades for the €2-billion bond issue are part of the growing praise for Government of Canada debt securities, which are widely recognized for their exceptional security at a time when investor confidence in the sovereign debt of many countries is weakening.
“This award is a vote of confidence by the global financial industry in the fiscal management of the Harper Government,” said the Honourable Jim Flaherty, Minister of Finance. “Combined with our Triple-A debt rating and the best fiscal position in the Group of Seven industrialized countries, the Canada brand is well established in financial markets.”
The Harper Government responded to the deepest global recession since the 1930s with Canada’s Economic Action Plan, a $60-billion fiscal stimulus package to create and protect jobs and to encourage economic growth today and for the future. The plan has been a success, with all of the economic output and jobs lost during the recession having been recouped. In fact, over 465,000 jobs have been created since July 2009, more than offsetting all of the jobs lost during the recession.
While the need to inject stimulus into the economy has increased borrowing requirements, given Canada’s strong fiscal fundamentals and an efficient market debt program, Government of Canada bonds have found a ready and diversified investor base.
The bond issue recognized by EuroWeek, the Government of Canada’s first euro-denominated global bond issue, was concluded on January 8, 2010.
The 10-year bond issue raised €2 billion, equivalent to about US$2.8 billion at current exchange rates. The proceeds were used exclusively to supplement and diversify funding for Canada’s foreign exchange reserves, rather than to finance public debt or spending. The investor base for the issue included more than 200 investors from a wide range of central banks, other official institutions, commercial banks and foreign-based investment funds across a diverse geographical area.
Further details on the future direction of Canada’s market debt strategy will be released later in the spring.
For more information on the Exchange Fund Account, please consult the Report on the Management of Canada's Official International Reserves.
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Office of the Minister of Finance
Department of Finance
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