The Canadian government launched on Monday the 500 million Canadian dollar (400 million U.S. dollar) Ukraine Sovereignty Bond, APA reports citing Reuters.
According to a press release issued by the Canadian Finance Ministry, the funds will assist the government of Ukraine so it can continue to provide essential services to Ukrainians this winter, such as pensions, the purchasing of fuel, and restoring energy infrastructure.
Consistent with the terms of Canada's financial assistance to Ukraine to date, the funds cannot be used for lethal activities or purchases, and must be consistent with relevant sanctions laws and regulations, the release said.
According to the release, Canadians who purchase the Ukraine Sovereignty Bond will, in effect, be purchasing a regular five-year Government of Canada bond at roughly the current 3.3 percent rate of return.
After the bond issuance has concluded, and subject to negotiations with Ukraine, an amount equal to the proceeds from the bond will be transferred to Ukraine through the International Monetary Fund Administered Account for Ukraine, the release said.