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

From: Department of Finance Canada

News release

March 12, 2025 - Ottawa, Ontario - Department of Finance Canada

On March 11, the Government of Canada launched a five-year US$3.5 billion global bond.

The transaction saw robust demand, with an order book exceeding US$13.9 billion, underscoring investor confidence in Canada’s resilient economy, sound fiscal position, and AAA credit ratings.

Proceeds from this global bond will supplement and diversify Canada’s liquid foreign reserves. These liquid foreign reserves are a source of prudential liquidity and promote orderly conditions for the Canadian dollar in foreign exchange markets.

The high-quality investor base for the five-year bond includes central banks, international institutions, bank treasuries, and foreign-based investment funds, reflecting broad international confidence in Canadian assets.

The issuance of a global bond supports the government’s longstanding commitment, reaffirmed in Budget 2024, to maintain liquid foreign reserves at or above three per cent of nominal gross domestic product.

Quick facts

  • On March 11, 2025, the government issued a US$3.5 billion global bond, at a spread of 11 basis points over the five-year US Treasury, maturing on March 18, 2030.

  • Strong global demand resulted in an order book exceeding US$13.9 billion.

  • This transaction priced among the tightest 5-year US-dollar bonds issued by Canada’s peers so far in 2025, reflecting strong investor demand and confidence in Canada’s credit profile.

  • The bond provides cost-effective and diversified funding for Canada’s liquid foreign reserves held in the Exchange Fund Account. 

  • The Government of Canada last issued a US-dollar bond in April 2024 worth US$3 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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