Canada issues CAD 500 mln bonds to support Ukraine

MOSCOW. Nov 22 (Interfax) - Canada has issued bonds for 500 million Canadian dollars to support Ukraine, Ukrainian media said, citing the website of the Canadian government.

"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 in a statement.

The government of Canada has partnered with participating financial institutions to offer interested Canadians the opportunity to purchase a Ukraine Sovereignty Bond in denominations of $100, it said.

"Canadians interested in purchasing this bond should contact their investment advisor or financial institution starting today and until November 29, 2022," it said.

"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," it said.

As reported, after the bond issuance has concluded, and if negotiations are held with Ukraine, an amount equal to the proceeds from the bond will be transferred to Ukraine through the International Monetary Fund Administered Account for Ukraine.

Ukrainian Prime Minister Denis Shmygal, for his part, has thanked Canadian Prime Minister Justin Trudeau and Deputy Prime Minister and Finance Minister of Canada Chrystia Freeland for the assistance provided to Ukraine.

It was reported earlier that the Canadian government had begun collecting applications for the purchase of 5-year bonds totaling 500 million Canadian dollars (about $373.4 million at the current exchange rate). The Ukraine Sovereignty Bonds will be placed via participatory financial institutions before November 29 as a way to support Ukraine.