Government bolsters Canada’s foreign reserves with US-dollar global bond
News release
April 25, 2024 - Ottawa, Ontario - Department of Finance Canada
On April 23, 2024, the Government of Canada launched a five-year US dollar global bond.
This was Canada’s second largest order book for a global bond in the past 15 years, at US$13.8 billion. This robust demand, a week after the government introduced Budget 2024, demonstrates strong investor confidence in Canada’s responsible fiscal management and is reflective of Canada’s AAA credit ratings.
The geographically diversified investor base for this five-year bond includes a wide range of central banks, international institutions, bank treasuries, and foreign-based investment funds.
This bond upholds the stability of Canada’s foreign currency reserves. Liquid foreign reserves are a source of prudential liquidity and promote orderly conditions for the Canadian dollar in foreign exchange markets.
This global bond will support the government’s commitment, reiterated in Budget 2024, to maintain liquid foreign reserves at or above three per cent of nominal gross domestic product.
Quick facts
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On April 23, 2024, the Government of Canada launched a US dollar global bond, priced at US$3 billion and at a spread of 10 basis points over the five-year US Treasury, maturing on April 30, 2029.
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The bond received strong demand from investors across the world as indicated by an order book of over US$13.8 billion.
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Reflecting strong demand, this global bond 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 2024.
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The bond transaction will provide cost-effective and diversified funding for the liquid foreign reserves held in the Exchange Fund Account, the largest component of Canada’s official international reserves.
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The Government of Canada last issued a US-dollar bond in April 2023 worth US$4 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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