Government issues U.S.-dollar global bond

The government of Canada launched a U.S.-dollar-denominated global bond on Tuesday, with pricing to be finalized on Wednesday.

The bond further strengthens “the stability of Canada’s foreign currency reserves while meeting investor demand for high-quality assets backed by Canada’s AAA credit ratings from most major credit rating agencies,” the Finance Department said a release.

Canada’s foreign currency reserves act as a financial buffer for the government and help support stable trading of the Canadian dollar in foreign exchange markets, if needed, the release said.

In the past couple of federal budgets, as well as in the spring economic update in April, the government reiterated its commitment to maintain liquid foreign reserves at or above 3% of nominal gross domestic product. 

Foreign currency bond issuance for 2026–27 may be up to an equivalent of $5 billion, but may vary depending on market conditions, Budget 2025 said.

Global bonds denominated in U.S. dollars or euros have been issued 13 times since 2009, with the most recent being a U.S.-dollar bond launched in March 2025 worth US$3.5 billion.

Staff

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