Debt securities issued by PSP Capital are now explicitly eligible as collateral to the Bank of Canada's Standard Liquidity Facility under the 'Other Public Sector' category. Therefore, institutions that participate directly in the Large Value Transfer System (LVTS) can now access liquidity from the Bank of Canada’s Standard Liquidity Facility by providing PSP Capital's debt securities as collateral. For more details, please refer to the following links: Bank of Canada’s announcement and Bank of Canada’s Standard Liquidity Facility.
A unique value proposition for investors
Our strong historical performance and rapid growth led to the establishment of a funding platform to leverage the strength of our balance sheet. In 2005, we began issuing debt through PSP Capital, a wholly-owned and fully guaranteed subsidiary. A robust governance framework combined with a conservative approach to borrowing allowed us to attract both domestic and international investors.
- Strong balance sheet
- Federal sponsorship
- AAA credit
- Exposure to Canada through a non-agent entity
- An attractive alternative to federal government and agency products
We are a crown entity, 100% owned by the Government of Canada
- The Government of Canada has the obligation to fund the pension plans in case of actuarial shortfall
Debt issuance ranks senior to pension plan liabilities
Operates at arm's length from the Government of Canada
Insolvency cannot occur without an act of Parliament
Did you know? PSP is an investment manager with no pension liability responsibility.
The growth of our debt program
After growing our debt program for 13 years, PSP Investments has built strong relationships with hundreds of investors across the globe by consistently issuing low-risk debt with a competitive return.
The future is promising. We anticipate that assets under management will double by 2030 to over $300B —and we expect the amount of debt we issue to follow the same trend. This will allow us to provide even greater value to a wider breadth of investors with a diversity of needs.
A strong credit profile
PSP Investments and PSP Capital's debt programs are rated AAA/AAA/Aaa.
The strength of our credit profile is based on our governance, Canadian government sponsorship, high liquidity standards, and conservative approach to leverage. We tailor our portfolio construction and investment strategies to achieve long-term goals and maintain our credit rating.
Recent term debt transactions
2.09% Nov 2023 (re-opening);
3.00% Nov 2025
UPDATED - Vision in motion: what lies ahead
Listen to the Vision in motion: what lies ahead audiocast on PSP’s five-year strategic plan, FY19 financial results and debt programs.