Government bolsters Canada’s foreign reserves by issuing US-dollar global bond

News release

April 21, 2023 - Ottawa, Ontario - Department of Finance Canada

On April 19, 2023, the Government of Canada issued a five-year US$4 billion global bond.

Issuing a global bond provides funds to supplement and diversify funding sources for Canada’s liquid foreign reserves. Liquid foreign reserves are a source of prudential liquidity and promote orderly conditions for the Canadian dollar in foreign exchange markets.

The investor base for the five-year bond issue includes a wide range of central banks, international institutions, bank treasuries, and foreign-based investment funds.

The issuance of this global bond is in line with the government’s commitment, reiterated in Budget 2023, to maintain liquid foreign reserves at or above three per cent of nominal gross domestic product. 

Canada’s successful US$4 billion global bond issuance will help meet the strong global demand—as evidenced by the final order book of over US$13 billion—for investment opportunities backed by Canada’s AAA credit ratings, while contributing to the stability of Canada’s foreign currency reserves.

Quick facts

  • On April 19, 2023, the government issued a US$4 billion global bond, at a spread of 11 basis points over the five-year US Treasury, maturing on April 26, 2028.

  • The issuance received strong demand from investors across the world as indicated by a final order book in excess of US$13 billion. 

  • Reflecting strong demand, this global bond issuance was priced more tightly in terms of credit spread than any of the five-year US-dollar bonds issued by Canada’s peers since the beginning of 2023.

  • The bond transaction will provide cost-effective and diversified funding for the liquid foreign reserves held in the Exchange Fund Account. 

  • The Government of Canada last issued a US-dollar bond in April 2022 worth US$3.5 billion.

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Contacts

Media may contact:

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries:

Phone: 1-833-712-2292
Facsimile: 613-369-4065
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

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