Canada issues US dollar bonds to boost reserves

Ottawa: The Canadian government has issued a 5-year US$4 billion global bond.

Global bond issuances provide funding to complement and diversify Canada’s liquid reserve funding sources. The Liquidity Reserve is a source of sound liquidity and promotes orderly conditions for the Canadian dollar in the foreign exchange market.

The investor base for the 5-Year Notes issue includes a wide range of central banks, international institutions, bank treasuries and foreign-based investment funds. This global bond issuance is in line with the government’s pledge to keep liquid foreign exchange reserves above his 3% of nominal gross domestic product.

Canada’s US$4 billion global bond issuance will help meet strong global demand for investment opportunities backed by Canada’s AAA credit ratings, as evidenced by a final order book of over US$13 billion, It also contributes to the stability of foreign exchange reserves.

• Global bonds have an 11 basis point spread over 5-year US Treasuries maturing on 26-Apr-2028.

• Reflecting strong demand, the global bond issue has been priced tighter in terms of credit spreads than any 5-year USD-denominated bond issued by its Canadian peers since early 2023. rice field.

• Bond trading provides a cost-effective and diversified funding source for liquid foreign exchange reserves held in exchange fund accounts. The Canadian government last issued his US$3.5 billion worth of US dollar bonds in April 2022.