Canada Issues More Ultra-Long Bonds

From: Department of Finance Canada

News Release

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.

Quick Facts

  • 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.

Associated Links

Contacts

Chloé Luciani-Girouard
Press Secretary
Office of the Minister of Finance
chloe.luciani-girouard@canada.ca
613-369-5699

Media Relations
Department of Finance Canada
fin.media-media.fin@canada.ca
613-369-4000

General enquiries

Phone: 613-369-3710
Facsimile: 613-369-4065
TTY: 613-369-3230
E-mail: fin.financepublic-financepublique.fin@canada.ca

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