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Canada launches U.S. dollar global bond to bolster foreign reserves

OTTAWA
2024-04-26 06:40

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OTTAWA, April 25 (Xinhua) -- The Canadian Finance Ministry announced Thursday it has launched a five-year U.S. dollar global bond to bolster the country's foreign reserves.

The ministry said in a news release that it launched the U.S. dollar global bond, priced at 3 billion dollars and at a spread of 10 basis points over the five-year U.S. Treasury, maturing on April 30, 2029.

This was Canada's second largest order book for a global bond in the past 15 years, at 13.8 billion dollars, the release said.

According to the release, this global bond will support the government's commitment to maintain liquid foreign reserves at or above 3 percent of nominal gross domestic product.

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, the release said.

Canada last issued a U.S.-dollar bond in April 2023 worth 4 billion dollars.
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