The federal government’s latest five-year global bond, valued at US$3.5 billion, is attracting strong investor interest with an order book reaching more than US$13.5 billion.
Central banks, international institutions, bank treasuries and foreign-based investment funds all acted as the investor base for the bond offering.
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It was priced at a spread of two basis points to U.S. Treasuries, which represents the tightest spread achieved for a five-year U.S. dollar sovereign, supranational and agency bond market, according to a press release.
The proceeds from the offering will supplement and diversify Canada’s liquid foreign reserves and “promote orderly conditions for the Canadian dollar in foreign exchange markets,” the release noted.
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