MONTREAL, Dec. 1 /CNW Telbec/ - The Business Development Bank of Canada (BDC) is pleased to announce that on November 30, 2009 it purchased $300 million in dealer floorplan receivable-backed notes from CNH Capital Canada Wholesale Trust, a securitization trust sponsored and administered by CNH Capital Canada Ltd. (CNH Capital) under the Canadian Secured Credit Facility (CSCF) program.
CNH Capital is a wholly owned subsidiary of CNH Global N.V., a world leader in the agricultural and construction equipment businesses. CNH Capital operates as the Canadian captive financing arm to its manufacturing parent to facilitate the sale of agricultural and construction equipment to end users through network of licensed CNH dealers in Canada.
The funds will be used primarily by dealers to finance the purchase of new and used agricultural and construction equipment and parts pending sale to end users. In addition, proceeds may also be used by dealers to purchase equipment for either their rental business or rent-to-own program.
"We have worked closely and diligently with industry participants and issuers such as CNH Capital and are pleased to reach this important milestone. This transaction demonstrates the value of the CSCF and validates recent changes made to the program parameters," said Paula Cruickshank, Vice-President of Securitization at BDC. "We are seeing strong interest in the program and are working on additional transactions that will further enhance the availability of financing for the sale of vehicles and equipment in Canada."
"We are pleased to access the Canadian government's Canadian Secured Credit Facility program and appreciate it, above all, as a significant source of funding to our agricultural and construction equipment dealers at a time when credit markets are still regaining their full vitality," said Steve Bierman, President, CNH Capital and interim Chief Financial Officer, CNH Global N.V.
A total of $12 billion was allocated to the CSCF in the 2009 federal budget, and is being made available to large and small companies alike to help support financing for the purchase of 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. For 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, firstname.lastname@example.org