Government Strengthens Canada's International Foreign Reserves by Issuing Global Bond
November 7, 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. Today, the Government of Canada successfully issued a US$3 billion global bond.
Issuing a global bond provides funds to supplement and diversify Canada's foreign exchange reserves for the benefit of Canada's financial system. Foreign exchange reserves provide a general source of prudential liquidity and support the promotion of orderly conditions for the Canadian dollar in foreign exchange markets.
This is the Government's first US-dollar bond issue since its US$3.5 billion bond issued in March 2015. The investor base for the 5-year bond issue includes a wide range of central banks, other official institutions and foreign-based investment funds across a diverse geographical area.
The issuance of a global bond is in line with the commitment that the Government made in Budget 2017 to maintain liquid foreign reserves at or above 3 per cent of nominal gross domestic product.
- Today, the Government issued a US$3 billion global bond that matures on November 15, 2022.
- The issuance received strong demand from investors in North America, Europe and Asia. The deal was met by high investor demand as indicated by an order book that was in excess of US$6 billion. The demand enabled Canada to achieve best-in-class pricing relative to US Treasury securities.
- This reflects Canada's strong economic and sound fiscal management, which supports the country's triple-A credit rating.
- The bond transaction achieved all of the Government's objectives, including the provision of cost-effective and diversified funding for the foreign exchange reserves held in the Exchange Fund Account.
Media may contact:
Office of the Minister of Finance
Department of Finance Canada