Canada has issued CAD500 million in bonds in support of Ukraine, the purchase of which Canadians will help the Ukrainian government continue to provide financial support as well as help rebuild critical infrastructure, according to the Canadian government’s website.
“The Canadian government is issuing $500 million in Ukraine sovereignty bonds today, the prime minister first announced last month. These funds will help the Ukrainian government continue to provide essential services to Ukrainians this winter, such as pensions, fuel purchases and the restoration of energy infrastructure,” the report said.
It is noted that the Canadian government has partnered with participating financial institutions to offer Canadians the opportunity to purchase Ukrainian sovereign bonds with a $100 face value. “Canadians interested in purchasing this bond should contact their investment adviser or financial institution between now and November 29, 2022,” the statement said.
“Canadians who buy Ukrainian sovereign bonds will effectively be purchasing a regular five-year Canadian government bond with a current yield of approximately 3.3%, depending on market conditions at the time of issuance. Canadians can be confident in the safety of their investment, which is fully supported by Canada’s ‘AAA’ credit rating,” the agency explained.
Reportedly, after the completion of the bond issue and subject to negotiations with Ukraine, an amount equal to the proceeds of the bond issue will be transferred to Ukraine through the International Monetary Fund (IMF) account for Ukraine.
For his part, Ukrainian Prime Minister Denis Shmygal thanked his colleague Justin Trudeau and Deputy Prime Minister and Finance Minister Chrysta Freeland for their assistance.
“Today Canada issued $500 million in Ukrainian sovereignty bonds. The proceeds will help provide vital payments and services for Ukrainians this winter. Thanks to Justin Trudeau, Hrysta Freeland and all Canadians for supporting Ukraine,” Shmygal wrote on his Twitter microblog.
As reported on November 18, the Government of Canada began collecting applications to buy five-year bonds worth 500 million Canadian dollars (CAD, about 373.4 million at current exchange rates) – Ukraine Sovereignty Bonds – for financial support for Ukraine, offering to submit them until November 29 through participating financial institutions.
