The Government of Canada has successfully issued $1.5 billion in 50-year bonds.
This inaugural ultra-long issue is the first of its kind for the government and is in line with its commitment to reallocate short-term bond issuance toward long-term bonds to help reduce refinancing risk.
The bonds have a yield of 2.96% and mature on Dec. 1, 2064.
“In the current environment, it is both advantageous and prudent for our government to lock in additional long-term funding,” says Minister of Finance Joe Oliver. “This 50-year bond will help us meet our goal of raising stable and low-cost funding to meet Canada’s financial needs and best serve taxpayers.”
Last year, the Canadian Life and Health Insurance Association proposed that the federal government issue ultra-long bonds.
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