For the first time since 2011, Ontario issued a US$2-billion 10-year bond without the involvement of any U.S.-based banks. The deal was managed by British banking giant Barclays PLC and three Canadian banks: BMO Capital Markets, Canadian Imperial Bank of Commerce, and Bank of Nova Scotia. This decision comes after Premier Doug Ford's earlier commitment to ban U.S. companies from government contracts in response to a continental trade war initiated by U.S. President Donald Trump, although the finance ministry stated the exclusion was due to a competitive process, not a prohibition. Other provinces like Alberta also recently avoided U.S. banks for bond deals, while British Columbia continued to use them.
Ontario leaves out American banks from U.S.-dollar bond issuance in a first since 2011
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TL;DR: Key points with love ❤️For the first time since 2011, Ontario issued a US$2-billion 10-year bond without the involvement of any U.S.-based banks. The deal was managed by British banking giant Barclays PLC and three Canadian banks: BMO Capital Markets, Canadian Imperial Bank of Commerce, and Bank of Nova Scotia. This decision comes after Premier Doug Ford's earlier commitment to ban U.S. companies from government contracts in response to a continental trade war initiated by U.S. President Donald Trump, although the finance ministry stated the exclusion was due to a competitive process, not a prohibition. Other provinces like Alberta also recently avoided U.S. banks for bond deals, while British Columbia continued to use them.
Trending- 1 2011: Last time Ontario issued a U.S.-dollar bond without U.S. banks.
- 2 January 2025: Ontario sold US$3-billion worth of five-year bonds with Bank of America Corp.
- 3 Early March 2025: Premier Doug Ford pledged to ban U.S. companies from all Ontario procurement contracts until the Trump administration removes tariffs.
- 4 March 2025: Alberta sold €1.25-billion worth of 10-year bonds without a U.S. bank.
- 5 Last week (early June 2025): Ontario sold US$2-billion worth of 10-year bonds without U.S. banks. British Columbia issued a US$2.5-billion bond with U.S. banks.
- Ontario's bond issuance marked the first time since 2011 that U.S. banks were excluded.
- The deal generated 'record interest for an Ontario 10-year USD deal'.
- Highlights differing approaches among Canadian provinces regarding the use of U.S. banks for bond sales.
What: Ontario issued a US$2-billion 10-year bond without the assistance of any U.S.-based banks, a first since 2011. The bond sale was managed by British and Canadian banks. This action aligns with Premier Doug Ford's previous stance on banning U.S. companies from government contracts due to trade disputes.
When: Last week (prior to June 9, 2025). The previous instance of U.S. banks participating was as recently as January of this year. Premier Doug Ford's pledge to ban U.S. companies was made in early March.
Where: Ontario, Canada (for the bond issuance). Also mentions Alberta and British Columbia for comparative bond deals. U.S. (for banks and trade war origin).
Why: According to Ontario finance ministry spokesperson Scott Blodgett, inclusion in bond deals is a competitive process based on factors like dealer availability, indicative pricing, quality coverage, and rotation, not a 'dropping' of U.S. banks. However, it follows Premier Doug Ford's earlier commitment to ban U.S. companies from government contracts in response to U.S. President Donald Trump's tariffs and trade war.
How: Ontario sold US$2-billion worth of 10-year bonds with the help of Barclays PLC, BMO Capital Markets, Canadian Imperial Bank of Commerce, and Bank of Nova Scotia, bypassing U.S. financial institutions.