The debt offering is being led by TD Securities and RBC Capital Markets and will consist of two series of bonds, with terms up to and including 30 years.
Funds raised will be poured into Canada Post's "postal transformation" program, meant to invest in new facilities, equipment and systems. The company said will help it increase competitiveness and improve the financial sustainability of the company, as well as working conditions for employees.
Canada Post said the program is expected to generate $250 million in annual cost savings by 2017.
The federal government recently increased Canada Post's external borrowing limit to $2.5 billion, up considerably from its previous limit of $300 million.
"By increasing our debt to a level that is appropriate for a company of our size and financial profile, Canada Post will be able to invest in its critically-needed modernization" said chief financial officer Wayne Cheeseman, in a statement.
"This debt offering will enable the company to increase its financial flexibility, invest in its future and keep serving Canadians while remaining financially self-sufficient."
