This week, the Government of Canada issued a three-year US$3.5 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 three-year bond issue includes a wide range of central banks, international institutions, bank treasuries, and foreign-based investment funds.
The issuance of a global bond is in line with the government's commitment, reiterated in Budget 2022, to maintain liquid foreign reserves at or above three per cent of nominal gross domestic product.
With investors seeking investment opportunities backed by Canada's triple-A credit ratings-as evidenced by the final order book of US$7 billion-Canada's successful US$3.5 billion global bond will help meet that global demand, while bolstering Canada's foreign currency reserves.
