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.
