BDC & National Bank form alliance

Montreal, 4 May 2000 - 

The National Bank of Canada and the Business Development Bank of Canada (BDC) today announced a strategic alliance aimed at enabling better access to capital and consulting services for small and medium-sized businesses across the country.

The BDC and the National Bank will work together to provide a comprehensive range of financial products and services to innovative businesses who are focused on growth and exporting. These include SMEs operating in the knowledge-based sector, exporters and manufacturers with innovative approaches or who wish to increase their productivity. This alliance will be delivered via National Bank's network of commercial centers and BDC branches in major centres across the country.

A combined pool of $100 million has been allotted for the term financing of tangible and intangible assets as well as expenses related to the development of international markets. Typically, the loans will not exceed $5 million and are targeted towards businesses with an ability to generate cash flow and who already have a viable capital structure.

"National Bank works hard to deliver tailored financial solutions to their customers. This alliance with the BDC will further enhance the range of financial tools we can present to our customers, enabling them to achieve their revenue and profit goals," said Réal Raymond, President, Consumer and Commercial Banking.

For many firms, enhancing productivity is key to their growth strategy. The formation of this strategic alliance will allow both BDC and the National Bank to design tailored solutions for companies wanting to both increase productivity and to compete in international markets.

"This strong alliance with National Bank is just what businesses need in order to grow, compete in international markets and increase productivity -- we're very proud of this alliance," said Luc Provencher, Deputy Chief Executive Officer at the BDC.

The Business Development Bank of Canada (BDC) is a financial institution wholly owned by the Government of Canada. BDC plays a leadership role in delivering financial and consulting services to Canadian small business, with a particular focus on the technology and export sectors of the economy.

Ranking sixth among Canada's chartered banks, the National Bank is the leading banking institution in Quebec and the bank of choice for small and medium-sized enterprises. It has branches in every province of the country. Through its representative offices, subsidiaries and alliances, it is also represented in the United States, Europe and elsewhere in the world. Founded in 1859, National Bank of Canada is the product of a series of mergers and acquisitions. It has assets of close to $70 billion and, together with its subsidiaries, it employs over 17,000 people. The Bank's head office is in Montreal and its shares are listed on the Toronto and Vancouver stock exchanges.

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For the National Bank :

Jean Robillard
Media Relations
Financial Communications Officer
Public Relations Department
Tel. (514) 394-6990
jean.robillard@bnc.ca

For Business Development Bank of Canada :

Serge Laliberté
Director, Media Relations
Tel. (514) 283-3054
serge.laliberte@bdc.ca