To offer Canadians an opportunity to directly support Ukraine, the Government of Canada announced that it will issue a Ukraine Sovereignty Bond. The five-year, $500 million bond, denominated in Canadian dollars, will be issued in late November 2022.
The Ukraine Sovereignty Bond builds on the Government of Canada’s $2 billion in direct financial assistance to Ukraine so far in 2022, all of which has already been disbursed. 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.
Subject to negotiations with Ukraine, an amount equal to the proceeds from the bond will be transferred to Ukraine through the International Monetary Fund’s (IMF) Administered Account for Ukraine, which Canada played a leading role in creating.
The funds will support the Government of Ukraine to continue to operate in the face of Russia’s illegal invasion, including by providing essential services to Ukrainians, such as pensions, the purchasing of fuel before winter, and restoring energy infrastructure. The Government of Canada has partnered with participating financial institutions to offer Canadians the opportunity to purchase a Ukraine Sovereignty Bond in denominations of $100.
What are bonds?
Government of Canada bonds are debt instruments issued by the government to raise funds.
The bond investor lends money to the Government of Canada, which commits to make interest payments to the investor on specific dates, and repay the principal amount in full on the set maturity date.
How the Ukraine Sovereignty Bond will work
Canadians who participate in 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 the market conditions at the time of issuance. To provide investors with confidence about the safety of their funds, the Ukraine Sovereignty Bond will likewise be backed by Canada’s AAA credit rating.
The bond will pay interest twice per year, on February 24 and August 24, until the bond matures in 2027. For example, a $1,000 investment at a yield of 3.3 per cent should expect to receive $16.50 every February and August through 2027.
The bond will mature on August 24, 2027, Ukrainian Independence Day, at which time bondholders will receive the full repayment of their initial investment.
How to purchase a Ukraine Sovereignty Bond?
Participating financial institutions will make the Ukraine Sovereignty Bond available to Canadians in $100 denominations.
If you are interested in purchasing a bond, please contact your financial institution. They can assist you in accessing the bond through an investment account, and help you to set up the right kind of account if you don’t already have one.
The Ukraine Sovereignty Bond will be available through the participating financial institutions listed below. These financial institutions can explain how to access the bond via an investment account, and how to set up the necessary account if you don’t already have one.
- BMO Nesbitt Burns Inc.
- If you are a client of BMO Nesbitt Burns, please speak with your BMO Nesbitt Burns Investment Advisor.
- BMO Wealth Management
- If you are a client of BMO InvestorLine, please call toll-free at 1-888-776-6886
- CIBC World Markets Inc.
- Desjardins Wealth Management
- Laurentian Bank Securities Inc.
- National Bank Financial Inc.
- For National Bank Financial (NBF) clients please contact your Investment Advisor;
- For National Bank Direct Brokerage (NBDB) clients, please call 1-800-363-3511.
- RBC Dominion Securities Inc. / RBC Direct Investing
- If you are a client of RBC Dominion Securities Inc., please contact your Investment Advisor directly
- If you are a client of RBC Direct Investing, please call 1-800-769-2560
- Scotia iTrade
- Scotia Wealth Management
- TD customers can purchase a Ukraine Sovereignty Bond in one of two ways:
- Via TD Direct Investing: please visit TD Direct Investing
- Via TD Wealth Private Investment Advice: please contact your Investment AdvisorPlease note: TD customers must have an active account in good standing with TD Direct Investing or TD Wealth Private Investment Advice prior to any order being placed.
After contacting your financial institution, the final step is to purchase the bond in the amount of your choice ($100 denominations) through a registered dealer.
Once purchased, the bond will mature on August 24, 2027, a term of approximately five years. Interest will be paid twice per year.
Canadians interested in purchasing this bond when it is initially issued by the government should contact their investment advisor or financial institution before November 29.
Following this date, Canadians may still be able to purchase this bond, subject to availability.