Canada Housing Trust is selling $1.475-billion of fixed rate bonds, due in 2020, and that debt will be sold at a 43 basis point premium to the similar government of Canada bond, despite carrying the very same triple-A credit rating.
A floating rate issue is also being marketed, with am estimated minimum targeted size of $1-billion.
These financings are being conducted by BMO Nesbitt Burns, Bank of America/Merrill Lynch, RBC Dominion Securities and Scotia Capital.
As part of a push to win a global following for Canada mortgage bonds, underwriters have already applied to have this debt listed on the Luxembourg Stock Exchange, which will result in the availability of this issue to trade in European markets.
This means little to the average Canadian, but does demonstrate the increased global interest in Canada and its strong economic base. I expect further flow of foreign investment dollars into Canadian real estate as more investors become convinced of the stable opportunity here.
Robert W May is a Real Estate Broker in Lethbridge Alberta, having now been in the industry for over 23 years. . He was also a licensed Lethbridge mortgage broker and financing expert with Canada First Mortgage of Calgary Alberta for the past 10 years. He is an industry leader always willing to help train and educate others in how to improve their business models for financial and personal benefit.