The Bank of Canada said it will issue a five-year, C$500 million bond Ukraine Sovereignty bond in late November, to allow Canadians to support Ukraine’s government.
The central bank said the funds will support Ukraine’s continued operations in the face of Russia's illegal invasion, by providing essential services to Ukrainians such as pensions, purchasing fuel before winter, and restoring energy infrastructure.
The Ukraine Sovereignty Bond builds on the government of Canada's $2 billion in direct financial assistance to Ukraine so far in 2022. Canada has also committed more than $2.5 billion in military, humanitarian, and development assistance to Ukraine this year. This brings Canada's assistance in 2022 to more than $5 billion, according to the bank.
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Canadians who participate in the Ukraine Sovereignty Bond will be purchasing a five-year government of Canada bond at roughly a 3.3% rate of return. The bond will be backed by Canada's AAA credit rating, the bank said.
The bond will pay interest twice per year, on February 24 and August 24 each year, according to the bank, until the bond matures on August 24, 2027 – Ukrainian Independence Day – at which time bondholders will receive the full repayment of their initial investment.
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