BNN Bloomberg:

Canada’s government is targeting individual investors with a new triple-A rated bond to help Ukraine and is asking bond dealers to make significant efforts to market it to them, according to a memo from the finance department.

The so-called Ukraine Sovereignty Bond will be in effect a five-year government security of Canada, which will lend the proceeds to the Ukrainian government at the same interest rate to help fund basic services such as pension payment. The securities will have the same rating as Canada’s top-rated regular bonds.

Wait, we’re lending this to the Ukraine government? We’re not just giving them the money?

This seems like signalling on steroids. The Canadian Government isn’t even giving the bonds to the Ukraine government, or rather they are, they’re just giving the entire bond. Either this is a long, drawn out ploy to have the Ukraine Government default on their bond obligations, in which case this is a giveaway to Zelensky, or this is a total waste of everybody’s time.

The push to get retail investors to buy the debt underscores the government’s desire to go beyond just financial support for Ukraine: it’s also to show broad Canadian support for the country in its fight with Russia, according to the memo to bond dealers seen by Bloomberg.

Considering the language it appears to be a total waste of time. This is all but confirmed later in the article.

Canada becomes the first country outside of Ukraine to offer a bond for purchase in support of embattled nation. The government will provide a loan to Ukraine equivalent to the proceeds from the bond sale, according to a statement issued by Prime Minister Justin Trudeau earlier on Friday.

The debt offering comes in addition to C$2 billion ($1.47 billion) in Canadian financial assistance to Ukraine so far this year.

We truly live in the dumbest timeline.

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in Canada