Provincial Bond Purchase Program

Learn about the program, access its results and reporting, and find key contacts and related notices.

Program details

The Provincial Bond Purchase Program (PBPP) aims to support the liquidity and efficiency of provincial government funding markets, by purchasing bonds through a tender process in the secondary market. It supplements the Provincial Money Market Purchase Program (PMMP). The asset manager for this program is BMO Global Asset Management. The amount of debt purchased for any given eligible issuer will factor in the share of the issuer’s debt outstanding as well as the issuer’s share of Canada’s GDP.

Terms and conditions

See the full terms and conditions for this program.

Primary dealers for Government of Canada marketable bonds as listed on the Bank of Canada website are eligible to participate in the PBPP. Eligible dealers should contact to register.

Operational details

Purchases will be executed through a tender offer process. Authorized dealers will be provided advance notice before a tender date as to the eligible assets for tender. Dealers will communicate offers to sell notional amounts of eligible assets at a specified price to BMO GAM, at times determined by BMO GAM.

  • There is no minimum rating requirement.
  • The Bank will not purchase more than 20% of an issuer’s eligible assets outstanding.
  • The Bank’s purchases will aim to reflect a reference portfolio based in equal weight on each province or territory’s share of eligible bonds outstanding and their share of Canadian GDP. Each issuer’s eligible share will be recalculated on a monthly basis. Actual purchases will depend on what is offered through the tender offer process and may differ from the reference portfolio.
  • The program will hold up to a total of $50 billion par value of eligible assets.
  • The program and its operations may be amended at any time if conditions warrant.

Duration

The program will begin on May 7, 2020 and operate for 12 months from May 7, 2020 to May 6, 2021.

Eligible assets

CAD-denominated bonds maturing on or before April 15, 2031 issued by or guaranteed by a provincial or territorial government that meet the criterion of sufficiently high quality as determined by the Bank.

A list containing eligibility information and decisions to impose additional risk mitigants for provinces whose securities are either directly issued or guaranteed is available on the Bank’s website. The program will purchase the eligible assets in the secondary market.

Non-guaranteed agency bonds, municipal bonds, real return bonds, floating rate notes, strip/residuals, T-Bills, and promissory notes issued by provinces or territories are ineligible for purchase in the program.

Eligible issuers

Eligible issuers are all Canadian provinces and territories and provincial and territorial guaranteed agencies.

Pricing

As purchases will be executed through a tender offer process, pricing will depend on market conditions. The Bank reserves the right to adjust its pricing and portfolio requirements and objectives to meet policy objectives.

Operations

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Upcoming operations

Details for the next operation—including the purchase amount and eligible maturity range—will be provided in this table. The target amount to be purchased will be updated on the morning of the auction.

Reverse auction date Settlement date Eligible maturity range (years) Number of securities eligible Maximum par amount to be purchased ($M)
2021-04-22 2021-04-26 - - -

Results

The results of the operation will be updated after 16:00 (ET) on each day the program is active.

Reverse auction date Settlement date Eligible maturity range (years) Number of securities purchased Number of securities eligible Par amount purchased ($M) Maximum par amount to be purchased ($M) Transaction type
2021-04-15 2021-04-19 0-11 5 20 107.000 350.0 Reverse auction
2021-04-08 2021-04-12 0-11 3 18 95.000 350.0 Reverse auction
2021-03-31 2021-04-05 0-11 3 17 66.000 350.0 Reverse auction
2021-03-25 2021-03-29 0-11 7 18 165.000 350.0 Reverse auction
2021-03-18 2021-03-22 0-11 8 18 166.100 350.0 Reverse auction
2021-03-11 2021-03-15 0-11 8 16 183.571 350.0 Reverse auction
2021-03-04 2021-03-08 0-11 11 16 243.000 350.0 Reverse auction
2021-02-25 2021-03-01 0-11 8 14 151.200 350.0 Reverse auction
2021-02-18 2021-02-22 0-11 2 5 20.200 63.0 Reverse auction
2021-02-16 2021-02-18 0-11 13 16 436.500 500.0 Reverse auction
2021-02-11 2021-02-16 0-11 5 8 134.000 184.0 Reverse auction
2021-02-09 2021-02-11 0-11 14 21 315.900 500.0 Reverse auction
2021-02-04 2021-02-08 0-11 4 9 83.990 193.0 Reverse auction
2021-02-02 2021-02-04 0-11 14 21 306.623 500.0 Reverse auction
2021-01-28 2021-02-01 0-11 3 8 78.000 193.0 Reverse auction
2021-01-26 2021-01-28 0-11 15 21 306.590 500.0 Reverse auction
2021-01-21 2021-01-25 0-11 8 11 153.980 185.0 Reverse auction
2021-01-19 2021-01-21 0-11 13 20 315.000 500.0 Reverse auction
2021-01-14 2021-01-18 0-11 8 15 188.800 349.0 Reverse auction
2021-01-12 2021-01-14 0-11 10 23 150.500 500.0 Reverse auction
2021-01-07 2021-01-11 0-11 3 13 65.000 244.0 Reverse auction
2021-01-05 2021-01-07 0-11 15 25 255.600 500.0 Reverse auction
2020-12-22 2020-12-24 0-11 14 21 359.980 500.0 Reverse auction
2020-12-17 2020-12-21 0-11 7 17 185.000 384.0 Reverse auction
2020-12-15 2020-12-17 0-11 5 24 116.000 500.0 Reverse auction
2020-12-10 2020-12-14 0-11 9 14 126.290 205.0 Reverse auction
2020-12-08 2020-12-10 0-11 17 25 294.798 500.0 Reverse auction
2020-12-03 2020-12-07 0-11 5 17 106.790 313.0 Reverse auction
2020-12-01 2020-12-03 0-11 10 25 186.511 500.0 Reverse auction
2020-11-26 2020-11-30 0-11 7 23 172.065 412.0 Reverse auction
2020-11-24 2020-11-26 0-11 5 23 88.297 500.0 Reverse auction
2020-11-19 2020-11-23 0-11 4 21 80.000 461.0 Reverse auction
2020-11-17 2020-11-19 0-11 12 23 288.988 750.0 Reverse auction
2020-11-12 2020-11-16 0-11 8 21 150.888 409.0 Reverse auction
2020-11-10 2020-11-13 0-11 15 25 341.012 750.0 Reverse auction
2020-11-05 2020-11-09 0-11 14 25 214.455 469.0 Reverse auction
2020-11-03 2020-11-05 0-11 12 25 281.085 750.0 Reverse auction
2020-10-29 2020-11-02 0-11 6 18 137.500 290.0 Reverse auction
2020-10-27 2020-10-29 0-11 12 24 210.445 500.0 Reverse auction
2020-10-22 2020-10-26 0-11 5 18 115.000 350.0 Reverse auction
2020-10-20 2020-10-22 0-11 7 23 150.500 500.0 Reverse auction
2020-10-15 2020-10-19 0-11 5 13 87.700 203.0 Reverse auction
2020-10-13 2020-10-15 0-11 13 20 296.945 500.0 Reverse auction
2020-10-08 2020-10-13 0-11 12 20 234.510 355.0 Reverse auction
2020-10-06 2020-10-08 0-11 9 25 145.800 500.0 Reverse auction
2020-10-01 2020-10-05 0-11 6 14 130.340 265.0 Reverse auction
2020-09-29 2020-10-01 0-11 14 25 235.300 500.0 Reverse auction
2020-09-24 2020-09-28 0-11 8 18 206.600 317.0 Reverse auction
2020-09-22 2020-09-24 0-11 7 23 183.100 500.0 Reverse auction
2020-09-17 2020-09-21 0-11 10 24 92.721 372.0 Reverse auction
2020-09-15 2020-09-17 0-11 9 25 128.459 500.0 Reverse auction
2020-09-10 2020-09-14 0-11 7 16 97.000 230.0 Reverse auction
2020-09-08 2020-09-10 0-11 14 26 269.273 500.0 Reverse auction
2020-09-03 2020-09-08 0-11 11 14 244.980 372.0 Reverse auction
2020-09-01 2020-09-03 0-11 8 22 128.653 500.0 Reverse auction
2020-08-27 2020-08-31 0-11 2 12 41.400 278.0 Reverse auction
2020-08-25 2020-08-27 0-11 9 19 222.300 500.0 Reverse auction
2020-08-20 2020-08-24 0-11 7 20 160.000 378.0 Reverse auction
2020-08-18 2020-08-20 0-11 7 24 122.571 500.0 Reverse auction
2020-08-13 2020-08-17 0-11 4 15 64.100 307.0 Reverse auction
2020-08-11 2020-08-13 0-11 9 21 192.938 500.0 Reverse auction
2020-08-06 2020-08-10 0-11 7 23 256.000 654.0 Reverse auction
2020-08-04 2020-08-06 0-11 5 28 96.300 750.0 Reverse auction
2020-07-30 2020-08-04 0-11 5 12 175.800 407.0 Reverse auction
2020-07-28 2020-07-30 0-11 15 26 342.939 750.0 Reverse auction
2020-07-23 2020-07-27 0-11 11 13 340.982 367.6 Reverse auction
2020-07-21 2020-07-23 0-11 7 15 132.400 500.0 Reverse auction
2020-07-16 2020-07-20 0-11 4 8 142.490 232.5 Reverse auction
2020-07-14 2020-07-16 0-11 13 18 267.524 500.0 Reverse auction
2020-07-09 2020-07-13 0-11 16 21 276.990 458.0 Reverse auction
2020-07-07 2020-07-09 0-11 2 17 42.000 500.0 Reverse auction
2020-06-29 2020-07-02 0-11 3 17 47.160 500.0 Reverse auction
2020-06-25 2020-06-29 0-11 6 9 65.285 260.0 Reverse auction
2020-06-23 2020-06-25 0-11 14 19 239.590 500.0 Reverse auction
2020-06-18 2020-06-22 0-11 5 9 146.674 314.5 Reverse auction
2020-06-16 2020-06-18 0-11 7 12 185.481 500.0 Reverse auction
2020-06-12 2020-06-16 0-11 15 16 327.080 407.0 Reverse auction
2020-06-09 2020-06-11 5-11 10 12 160.044 340.0 Reverse auction
2020-06-08 2020-06-10 0-5 8 12 182.852 410.0 Reverse auction
2020-06-05 2020-06-09 0-11 12 18 257.550 550.0 Reverse auction
2020-06-02 2020-06-04 7-11 11 13 291.625 565.0 Reverse auction
2020-06-01 2020-06-03 0-3 10 17 359.000 635.0 Reverse auction
2020-05-28 2020-05-29 0-11 6 - 100.000 - Request for quote
2020-05-27 2020-05-29 5-11 13 15 276.474 716.5 Reverse auction
2020-05-26 2020-05-28 0-5 12 13 385.499 496.0 Reverse auction
2020-05-22 2020-05-26 5-7 8 9 123.500 172.5 Reverse auction
2020-05-21 2020-05-25 3-5 10 11 194.600 274.5 Reverse auction
2020-05-20 2020-05-22 0-3 14 16 289.845 425.5 Reverse auction
2020-05-19 2020-05-21 7-11 10 12 200.999 327.5 Reverse auction
2020-05-13 2020-05-15 7-11 20 20 281.040 300.0 Reverse auction
2020-05-12 2020-05-14 5-7 17 18 236.000 247.5 Reverse auction
2020-05-08 2020-05-12 3-5 9 14 89.500 205.0 Reverse auction
2020-05-07 2020-05-11 0-3 8 15 120.000 225.0 Reverse auction

Reporting

The bonds purchased through this program will aim to reflect a reference portfolio which provides equal weight to each province or territory’s share of eligible bonds outstanding and their share of Canadian GDP, while maintaining a cap of 20% of an issuer’s eligible bonds outstanding, and total portfolio purchases of no more than $50 billion.

Province Share of reference portfolio (% as of 2021-03-31) Share of actual total holdings (% as of 2021-02-28) Par value of actual total holdings ($M as of 2021-02-28)
Alberta 12.79 12.80 2,087.8
British Columbia 10.39 10.46 1,705.8
Manitoba 4.22 4.26 694.3
New Brunswick 1.91 2.04 333.4
Newfoundland and Labrador 1.86 2.21 361.1
Northwest Territories 0.02 0.03 5.0
Nova Scotia 1.80 1.83 299.0
Nunavut 0.01 0.00 0.0
Ontario 42.51 42.20 6,881.5
Prince Edward Island 0.20 0.03 5.0
Quebec 21.35 21.72 3,541.5
Saskatchewan 2.95 2.42 393.9
Total 100.00 100.00 16,308.2

The Bank will update this table, including each province and territory’s share of the reference portfolio, every month with a one-month lag. The aggregate market value of the holdings of provincial bonds acquired through the PBPP program will be updated every Friday on the Bank’s weekly balance sheet.

The Bank will publish transaction-level data from this program, including the names of individual issuers purchased, on June 29, 2021. This is in line with the Bank’s commitment to be transparent while protecting commercially sensitive information and trade-specific detail that could impact the effectiveness of these programs, lead to market distortion or impact the fair market value of the Bank’s purchases while these programs are operational.

Key contacts


Managing Director
BMO Global Asset Management


Director
Financial Markets Department
Bank of Canada
613-782-7245

Subscribe to Related notices
Related notices

March 23, 2021

Bank of Canada announces the discontinuation of market functioning programs introduced during COVID-19

As overall financial market conditions continue to improve in Canada, use of the Bank of Canada’s programs that were introduced in 2020 in response to the shock from COVID-19 to support the functioning of key Canadian financial markets, has declined significantly.