The federal government raised $1.5 billion in its inaugural issue of 50-year bonds on Monday, as it shifts towards a more long-term funding strategy.

Ahead of the market opening, the Department of Finance indicated that it intended to issue a new ultra-long bond issue, “in the near future, subject to favourable market conditions.”

After the close, Finance Minister Joe Oliver announced that it successfully issued $1.5 billion worth of these bonds in the first-ever issue of such long-term securities.

The bonds mature on Dec. 1, 2064, and carry a yield of 2.96%. The government says that the issue of these securities is in line with its strategy of shifting from short-term bond issuance towards long-term bonds to help reduce refinancing risk.

“This issuance will contribute to a reduction in refinancing risk at a low cost, which is consistent with the key objectives of the medium-term debt strategy,” it said.