Today, the Government of Yukon announced the successful completion of a $200 million, 10-year bond issuance, representing the first tranche of long-term borrowing authorized as part of Budget 2025–26.
A bond is a type of loan where investors lend money to the government for a set period in exchange for regular interest payments and the return of the principal at maturity. As outlined in Budget 2025–26, the government obtained authorization to borrow up to $400 million in long-term debt to help ensure continued investments in critical infrastructure and services that meet the needs of a rapidly growing territory. Proceeds from this bond issuance will be used to support the priorities identified in the budget.
As part of the bond offering, the Government of Yukon participated in a comprehensive investor engagement process. Through this process, the Government of Yukon hosted a national investor meeting and met with nearly 30 individual institutional investors across Canada who expressed strong interest in investing.
As outlined in the Government of Yukon’s Fiscal and Economic Outlook, published with Budget 2025–26, the government remains in a favourable position to reduce or payback borrowing, as the fiscal outlook projects that net debt will stabilize and begin to decline in subsequent years as a result of continued revenue growth and the completion of significant capital projects.
Completing this $200 million bond issuance is an important milestone in the Yukon’s financial development. It shows that we can successfully access capital markets through a competitive process and secure funding at favourable terms. This not only meets today’s needs, but demonstrates the Yukon’s capacity, credibility and discipline in managing its finances responsibly over the long term. It marks another step in our growth as a government and in the maturity of our financial systems.
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The Government of Yukon was authorized in Budget 2025–26 to borrow up to $400 million in long-term debt this fiscal year.
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This $200 million bond issuance represents the first tranche of that planned borrowing. Details around a second tranche of borrowing will be announced as they are finalized.
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The bond offering was issued through a competitive offering process facilitated by CIBC serving as lead bank and RBC serving as the co-lead bank.
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The bond offering has been issued to investors at a coupon rate of 3.80 per cent, annually, with a maturity date of June 1, 2035.
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The funds will support priorities identified in the 2025–26 budget, including health care, environmental response and major infrastructure projects.
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This is the first time that the core Government of Yukon has accessed capital markets for long-term financing. The Yukon Development Corporation has previously issued a bond.
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The territorial government projects that net debt will begin to decline in the coming years as revenues grow faster than expenditures and as major capital projects are completed.
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The Yukon maintains one of the lowest debt levels in Canada relative to GDP and per capita.
Laura Seeley
Cabinet Communications
867-332-7627
[email protected]
Linnea Blum
Communications, Finance
867-332-2625
[email protected]