Archived - Government of Canada Considering an Ultra-Long Bond Issuance
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April 28, 2014 – Ottawa, Ontario – Department of Finance
As noted in the Debt Management Strategy for 2014–15, published as an annex to Economic Action Plan 2014, the Government of Canada has been engaged in the assessment of potential benefits of issuing bonds with a maturity of 50 years. Accordingly, the Government of Canada is considering issuing a bond with a maturity of 50 years through the process of syndication in the near future, subject to favourable market conditions.
The Government has pursued a tactical strategy of reallocating short-term issuance towards long-term bonds since 2012–13. Given the current yield environment and the strong demand for long-term bonds, it remains advantageous and prudent for the Government of Canada to continue to lock in additional long-term funding.
The issuance of bonds in the ultra-long sector would contribute to a reduction in refinancing risk at a low cost, in line with the key objectives of the medium-term debt strategy.