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UPDATE 1-Canada's government issues first U.S. dollar global bond since 2015
November 7, 2017 / 6:58 PM / a month ago

UPDATE 1-Canada's government issues first U.S. dollar global bond since 2015

(Recasts with government comment, bond pricing and background)

By Fergal Smith

TORONTO, Nov 7 (Reuters) - The Government of Canada issued $3 billion of a U.S. dollar-denominated five-year global bond at a spread of 9 basis points over U.S. Treasuries, a government spokesman said on Tuesday.

It was the first issue by Canada’s government of a U.S. dollar global bond, which is sold in several countries at the same time, since March 2015.

The coupon on the bond, which matures in November 2022, was set at 2 percent and the yield to maturity at issue was 2.066 percent, the spokesman said by email.

The funds will be used “to supplement and diversify Canada’s foreign exchange reserves,” a press release by Canada’s Department of Finance said.

Investors included “a wide range of central banks, other official institutions and foreign-based investment funds across a diverse geographical area,” the statement also said.

Canada is one of a few countries with an undisputed triple-A credit rating and its bonds are in high demand. (Reporting by Fergal Smith; Editing by Chizu Nomiyama and Marguerita Choy)

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