Text:Canada Issues C$750M Dec 2064 Ultra-Long Bonds;Yld 2.22%

By Yali N'Diaye

     OTTAWA (MNI) - Canada Finance Ministry published the following press

release Tuesday, announcing it issued C$750 million December 2064 ultra-long

bonds at a yield of 2.22% (reopening):

     The long-term financial security of Canadians is a cornerstone of the

Government of Canada's efforts to help protect the middle class and those

working hard to join it.

     Issuing ultra-long bonds provides debt cost and risk protection for the

benefit of Canadian taxpayers.

     Finance Minister Bill Morneau today announced that the Government of Canada

successfully issued $750 million in ultra-long bonds. This reopening of the

December 1, 2064 ultra-long bond is in addition to the $3.5 billion in

ultra-long bonds that are currently outstanding.

     The additional issuance of bonds in the ultra-long sector is in line with

the commitment that the Government made in Budget 2017 to reallocate short-term

bond issuance towards long-term bonds in order to lock in low funding costs and

reduce refinancing risk.

     Quick Facts:

     -This is the Government's fourth issuance of ultra-long bonds since the

start of 2014. 

     -Today, the Government issued $750 million of ultra-long bonds that mature

on December 1, 2064 at a yield of 2.22 per cent.

     -Canada received strong demand from both domestic and international

investors, with 11 individual accounts across most investor types participating

in the issue. 

     -With the additional issuance of $750 million, the Government has now

issued a total of $4.25 billion in ultra-long bonds. 

     -Locking in additional low-cost funding for 50 years benefits Canadian

taxpayers and reduces the Government's refinancing risk, outcomes consistent

with the key objectives specified in the Government's Debt Management Strategy.

--MNI Ottawa Bureau; +1 613 869-0916; email: yali.ndiaye@marketnews.com

[TOPICS: M$C$$$,M$$FI$]