The Government of Yukon has successfully completed a second bond issuance of $200 million for a five-year term. Proceeds from the bond issuance will be used to fund key government services and projects, such as investments in health care and energy.
The Government of Yukon was authorized in Budget 2025–26 to borrow up to $400 million in long-term debt this fiscal year. This $200 million bond issuance represents the second and final tranche of that planned borrowing. The government is accessing the entire $400 million authorized to fulfill commitments made in that budget and to help ensure continued financial flexibility.
The December 9, 2025, Interim Fiscal and Economic Update notes that the Government of Yukon’s total borrowing is approaching $900 million. To address the significant financial pressures the new government has inherited, a formal request will be made to the Government of Canada to increase its borrowing limit beyond the currently imposed cap of $1.2 billion.
A bond is a form of a loan to the government from investors that is repaid over a set amount of time. The government pays investors interest and returns the principal when the loan matures. This lets the government fund major priorities now while spreading costs across fiscal years. A competitive process facilitated by CIBC and RBC saw strong investor interest, leading to the successful issuance of the bond supported by the Yukon’s "AA Stable" credit rating.
While this is not our preferred approach to managing the territory’s finances, issuing the second tranche of previously planned borrowing was required. As demonstrated in the 2025–26 Supplementary Estimates, our new government needs to manage several financial pressures to maintain safety, reliable energy and the services Yukoners depend upon. This also reinforces the challenging financial situation we have inherited which will impact our decision-making as we prepare for Budget 2026 this spring and our formal request to the Government of Canada to increase our debt cap.
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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. The Government of Yukon issued the first bond in September 2025.
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Both bond offerings were 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 3.10 per cent, annually, with a maturity date of December 1, 2030.
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The Government of Yukon’s total borrowing is approaching $900 million of the $1.2 billion debt cap currently allowed by the Government of Canada.
Tim Kucharuk
Press Secretary, Cabinet Communications
867-335-2419
[email protected]
Linnea Blum
Communications, Finance
867-332-2625
[email protected]