A bond that is issued in Canadian dollars by non-domiciled companies (i.e., entities that are not Canadian residents). International companies may need to raise Canadian dollar-denominated funds and, thus, they resort to issuing maple bonds which provide a lower risk avenue of foreign investment should the bonds be of high credit quality. The maple leaf is a symbol drawn on the national flag of Canada hence the name “maple bond” given to this type of bond.
October 11, 2024
