Canada issues bonds worth CAD 500 mln to support Ukraine
Canada issued bonds in support of Ukraine in the amount of CAD 500 million, the purchase by Canadians of which will help the Ukrainian government continue to provide financial support to Ukrainians, as well as help restore critical infrastructure, the Canadian government website said.
"The Government of Canada is today launching the $500 million Ukraine Sovereignty Bond, first announced last month by the Prime Minister. The funds will assist the Government of Ukraine so it can continue to provide essential services to Ukrainians this winter, such as pensions, the purchasing of fuel, and restoring energy infrastructure," the Canadian government said.
The Canadian government has partnered with participating financial institutions to offer Canadians the opportunity to purchase Ukraine's $100 Sovereignty Bonds. Canadians interested in purchasing this bond should contact their investment advisor or financial institution from today until November 29, 2022.
"To offer Canadians an opportunity to directly support the brave people of Ukraine, the Canadians who purchase the Ukraine Sovereignty Bond will, in effect, be purchasing a regular five-year Government of Canada bond at roughly the current 3.3 per cent rate of return, subject to market conditions at the time of issuance. Canadians can be confident in the safety of their investment, which is fully backed by Canada's AAA credit rating," the Canadian government said.
After the completion of the bond issue and subject to negotiations with Ukraine, an amount equal to the proceeds from the bond issue will reportedly be transferred to Ukraine through the International Monetary Fund (IMF) account for Ukraine.
Prime Minister of Ukraine Denys Shmyhal, in turn, thanked his counterpart Justin Trudeau and Deputy Prime Minister and Minister of Finance Christina Freeland for helping Ukraine.
"Canada today launched the $500 million Ukraine Sovereignty Bond. The funds will help provide essential services to Ukrainians this winter. We are grateful to Justin Trudeau, Christina Freeland and all Canadians for standing with us," Shmyhal said on his Twitter microblog.