Bank of Canada accepts C$660 billion of bonds for exchange in auction

By Angela McDaniels

Tacoma, Wash., Dec. 21 - Bank of Canada said that C$613,857,000 of 1% bonds due Feb. 1, 2014 will be issued in exchange for the C$660 million of Government of Canada marketable bonds accepted for repurchase in a switch operation.

The bank accepted C$350 million of 3.5% bonds due June 1, 2013 and C$310 million of 3% bonds due June 1, 2014 for exchange. The allotment ratio was 100%.

The cutoff spread was minus 0.4 basis point for the 3.5% bonds and 2.6 bps for the 3% bonds.

The conversion ratio is 70.12% for the 3.5% bonds and 71.3% for the 3% bonds. The issue price of the replacement bonds is 100.304.

The auction was held on Wednesday, and the replacement bonds will be issued on Friday.

The repurchased bonds will be canceled.

Following settlement, the amount of bonds outstanding will be C$12,965,596,000 for the 3.5% bonds, C$13,324,524,000 for the 3% bonds and C$11,113,857,000 for the replacement bonds.

The bank also offered to repurchase C$8,946,093,000 of 5.25% bonds due June 1, 2013 and C$9,669,509,000 of 5% bonds due June 1, 2014. None of these bonds were bought back.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.