Canada issues C$500-mln bonds in support of Ukraine, one-tenth bought by individual Canadians

MOSCOW. Dec 1 (Interfax) - The Canadian government has announced the successful completion of the issuance of a five-year C$500-million Ukraine Sovereignty Bond (about $372.3 million).

"The investor base for the Ukraine Sovereignty Bond is primarily Canadian, with nearly [C]$50 million in demand from individual Canadians. Overall it includes a broad range of domestic and international institutional investors, different orders of government, and international official sector institutions like central banks," the Canadian government said in a statement cited by Ukrainian media.

The issuance received strong demand from both Canadian and foreign investors, with a total book order of C$500 million, and resulted in a semi-annual interest payment of 3.245%, the statement says. The payments will be made twice a year, i.e. on February 24 and August 24, and the bond will mature on August 24, 2027, when Ukraine celebrates Independence Day, "at which time bondholders will receive the full repayment of their initial investment," it said.

Following negotiations with Ukraine, an amount equal to the proceeds from the bond will be transferred to Ukraine in the form of a loan through the International Monetary Fund (IMF) Administered Account for Ukraine, it said.

This bond issuance brings Canada's financial assistance for Ukraine to C$2.5 billion, it said. Consistent with the terms of this assistance, the funds provided to Ukraine cannot be used for military (lethal) activities or purchases, it said.

Canada has separately committed more than C$2.5 billion in other types of assistance to Ukraine in 2022, it said.