Canadian maple bonds: A legal overview
Posted with permission and appears in Euromoney's Global Banking & Financial Policy Review 2006/2007
Sherry Roth and D'Arcy NordickThe maple bond market in Canada evolved as a result of changes announced in the February 2005 Canadian Federal Budget removing the "foreign property limit" that restricted Canadian institutional and individual investors in tax deferred investments (including pension and retirement funds) to holding no more than 30% of total assets in foreign securities. Since then, the maple bond market has been accessed by numerous foreign debt issuers, and some domestic Canadian issuers, using existing debt issuance programmes.
