Canada Issues More Ultra-Long Bonds
August 29, 2017 – Ottawa, Ontario – Department of Finance Canada
The long-term financial security of Canadians is a cornerstone of the Government of Canada's efforts to help protect the middle class and those working hard to join it. Issuing ultra-long bonds provides debt cost and risk protection for the benefit of Canadian taxpayers.
Finance Minister Bill Morneau today announced that the Government of Canada successfully issued $750 million in ultra-long bonds. This reopening of the December 1, 2064 ultra-long bond is in addition to the $3.5 billion in ultra-long bonds that are currently outstanding.
The additional issuance of bonds in the ultra-long sector is in line with the commitment that the Government made in Budget 2017 to reallocate short-term bond issuance towards long-term bonds in order to lock in low funding costs and reduce refinancing risk.
- This is the Government's fourth issuance of ultra-long bonds since the start of 2014.
- Today, the Government issued $750 million of ultra-long bonds that mature on December 1, 2064 at a yield of 2.22 per cent.
- Canada received strong demand from both domestic and international investors, with 11 individual accounts across most investor types participating in the issue.
- With the additional issuance of $750 million, the Government has now issued a total of $4.25 billion in ultra-long bonds.
- Locking in additional low-cost funding for 50 years benefits Canadian taxpayers and reduces the Government's refinancing risk, outcomes consistent with the key objectives specified in the Government's Debt Management Strategy.
Media may contact:
Office of the Minister of Finance
Department of Finance Canada