Archived - Canada Issues More Ultra-Long Bonds
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July 10, 2014 – Ottawa, Ontario – Department of Finance
Finance Minister Joe Oliver today announced that the Government of Canada successfully issued $1 billion in 50-year bonds. This is in addition to the $1.5 billion 50-year bonds issued on April 28.
The additional issuance of bonds in the ultra-long sector is in line with the commitment the Government made in Economic Action Plan 2012 to reallocate short-term bond issuance towards long-term bonds to help reduce refinancing risk and to lock in low funding costs for Canadian taxpayers.
- This is the first reopening of the Government’s ultra-long bond.
- Maturing on December 1, 2064, and with a yield of 2.76 per cent, the Government doubled its minimum size of $500 million for the transaction.
- Canada received exceptionally strong demand from both domestic and international investors, with 35 individual accounts across most investor types participating in the issue.
- With the addition of $1 billion in issuance today, the Government has now issued a total of $2.5 billion in 50-year bonds.
- Locking in additional low-cost funding for 50 years benefits Canadian taxpayers and reduces the Government’s refinancing risk, which is consistent with the key objectives of the medium-term debt strategy.
"Today's successful re-opening of the long-term bond is another example of how this Government efficiently responds to market needs and benefits from its focussed approach on fiscal prudence and sustainability. We are continuing to deliver on our commitment to reduce refinancing risk and lock in low-cost funding for Canadian taxpayers as the Government returns to budget balance in 2015."
- Joe Oliver, Minister of Finance
- 2014-15 Debt Management Strategy
- Economic Action Plan 2014
- Canada Launches Its First Ultra-Long Bond Issue
Director of Communications
Office of the Minister of Finance
Department of Finance