MONTREAL, April 13 /CNW Telbec/ - The Business Development Bank of Canada (BDC) today announced it has formed a public-private partnership with TAO Asset Management Inc. (TAO) aimed at facilitating access to funding under the Vehicle and Equipment Financing Partnership (VEFP).
The VEFP was announced by the federal government in Budget 2010 as part of the Business Credit Availability Program (BCAP). It is funded and managed by BDC, with an initial allocation of $500 million, and is to be disbursed and administered in partnership with experienced lenders and investors in the private market for asset-based financing. The VEFP is expected to expand financing options for small and medium-sized finance and leasing companies, increasing the availability of credit at appropriate rates for dealers and users of vehicles and equipment.
"A number of small and medium-sized finance and leasing companies, although creditworthy, face challenges in accessing the funds they need to respond to business and consumer demand. Listening to their feedback and working with TAO, BDC developed a solution that provides those companies with expanded financing options," said BDC President and Chief Executive Officer, Jean-René Halde. "Increasing access to financing also provides support to the Canadian economy by helping small and medium-sized businesses acquire the vehicles and equipment they need to improve their productivity".
The BDC-TAO Partnership will provide a common securitization structure for companies to obtain funding under the framework of the VEFP. This is a more economical and efficient way to access the securitization markets for small and medium-sized companies, which may not have the structuring and administration expertise or transaction volume to cost-effectively establish their own program. The TAO Group of Companies will provide structuring and administration services. Subordinated investments by TAO will support the security of BDC's investment.
"We are excited by the opportunity to partner with BDC to help re-start and revitalize Canadian securitization funding alternatives for the small and medium-sized finance and leasing companies, which play such a critical role in the Canadian economy," said Ken Toten, Chairman and Founder of the TAO Group of Companies. "The BDC-TAO Partnership will provide a further step in rebuilding investor confidence and participation in securitization markets. We are confident that, together, TAO and BDC will bring a consistent discipline to the exercise of risk management, underwriting, due diligence and on-going monitoring and surveillance that will ultimately create broader private sector interest and liquidity for both the senior and subordinated investments created under the partnership."
Companies interested in accessing VEFP funds through the BDC-TAO Partnership should contact James Joyce at 416-572-2219.
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. Visit www.bdc.ca for more information.
TAO Asset Management is part of the TAO Group of Companies, a Canadian owned and operated group of companies established with the purpose of providing a range of services to participants in the Canadian financial and credit markets. Visit www.taoasset.ca for more information.
SOURCE Business Development Bank of Canada
For further information: For further information: Media contact: Johanne Bissonnette, Media Relations Manager, BDC, (514) 283-7929, firstname.lastname@example.org; Ken Toten, Chairman, TAO Group of Companies, (416) 572-2803, email@example.com