Canada looking to issue more bonds with ultra-long, 50-year lifespan

OTTAWA – The Canadian government says it may issue more bonds with an unusually long life-span, maturing in about 50 years on Dec. 1, 2064, if market conditions remain favourable.

The Finance Department said Wednesday the bonds would pay interest at an annual rate of 2.75 per cent and be sold through a syndicate, but it didn’t say how much will be issued or when.

Canada first issued an ultra-long bond maturing Dec. 1, 2064 in April, when the government placed $1.5 billion with a yield of 2.96 per cent.

Ottawa wouldn’t speculate on the demand for another issue of ultra-long bonds, but noted that, for in inaugural issue, the primary investors were fund managers, pensions and insurance companies.

The issuance of the ultra-long bonds reduces the government’s refinancing risk.

Most of its long-term bonds have 10- and 30-year maturities when issued.