The locking in low-cost funding for 50 years benefits taxpayers
Toronto: Finance Minister Joe Oliver has announced that 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 since 2012–13 to reallocate short-term bond issuance towards long-term bonds to help reduce refinancing risk. Maturing on December 1, 2064, and with a yield of 2.96 per cent, this issuance will contribute to a reduction in refinancing risk at a low cost, which is consistent with the key objectives of the medium-term debt strategy. Alone among the Group of Seven countries, Canada continues to receive the highest possible credit ratings, with a stable outlook, from all the major credit rating agencies.