Transaction enhances access to credit for Canadian automotive dealers and consumers
MONTREAL, March 25 /CNW Telbec/ - The Business Development Bank of Canada (BDC) is pleased to announce that it has completed the purchase of $1.7 billion in asset-backed notes secured by dealer floor-plan receivables from the Canadian Swift Master Auto Receivables Trust (CSMART), sponsored by GMAC Canada, under the Canadian Secured Credit Facility (CSCF).
GMAC Canada is an indirect wholly-owned subsidiary of GMAC Inc. Its principal business is to provide various General Motors and Chrysler dealers in Canada with the automotive financing necessary to acquire and maintain appropriate vehicle inventories and to facilitate the purchase of GM and Chrysler vehicles by Canadian consumers.
The funds obtained through the CSCF will support GMAC Canada's ability to provide financing to Canadian automotive dealers and their customers to purchase vehicles.
"We are pleased to have been able to finance this second transaction with GMAC Canada under the CSCF, which will enhance the ability of Canadian automotive dealers and consumers to obtain financing," said Paula Cruickshank, Vice-President of Securitization at BDC. "Given the important role that floor-plan financing plays in allowing dealers to provide choice of models and timely product delivery to Canadian consumers, this transaction will further support the continuing resurgence of the Canadian automotive industry."
A total of $12 billion was allocated to the CSCF in the 2009 federal budget, and the facility is being made available to large and small companies alike to help support financing for the purchase of new vehicles and equipment.
BDC is Canada's business development bank. From more than 100 offices across the country, BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to entrepreneurs. From more information, visit www.bdc.ca
SOURCE Business Development Bank of Canada
For further information: For further information: Johanne Bissonnette, Media Relations Manager, BDC, (514) 283-7929, Johanne.firstname.lastname@example.org; Jim Olecki, Director, Global Communications, GMAC Financial Services, (212) 884-7955, email@example.com