National Bank (the "Bank") announced today that it has
entered into an agreement to acquire the commercial loan portfolio of
Silicon Valley Bank’s Canadian branch.
Under the terms of the agreement, the Bank will acquire a portfolio
in the Technology, Life Science and Global Fund Banking sectors,
further diversifying its commercial loan portfolio across Canada. The
portfolio is comprised of approximately CAD 1 billion in loan
commitments of which around CAD 325 million are outstanding. The
assets will be integrated into National Bank’s Technology and
Innovation Banking Group, under the leadership of Tuyen Vo, Head of
this group since 2019.
For over 25 years, the Bank has been supporting companies and
investors in the tech sector. Through a team of dedicated experts, the
Bank offers full-service banking and tailored advice on
venture-lending products, growth and M&A financing, treasury and
foreign exchange management, investment banking advisory and private
management services, as well as direct investments in fintechs via its
corporate venture capital arm.
"With this acquisition and following years of high growth by
the Technology and Innovation Banking Group, the Bank strengthens its
presence in the tech industry across Canada," said Michael
Denham, Executive Vice-President, Commercial and Private Banking at
National Bank. "As the Bank keeps expanding, we are thrilled to
support Canadian innovation in sectors that offer solutions to the
many challenges our society is facing. We are upbeat about the future
of technology-based companies and this acquisition demonstrates this."
Closing is expected in the coming weeks and is subject to customary
closing conditions, including approval by the Ontario Superior Court
of Justice supervising the proceedings of Silicon Valley Bank under
the Winding Up and Restructuring Act (Canada). The transaction
is not expected to have a material impact on the Bank’s consolidated results.