Transaction enhances access to credit for Canadian automotive consumers
MONTREAL, Jan. 20 /CNW Telbec/ - The Business Development Bank of Canada (BDC) is pleased to announce that it has completed the purchase of $1.263 billion in auto-loan receivables-backed notes from GMAC Canada under the Canadian Secured Credit Facility (CSCF) program.
GMAC Canada is an indirect wholly-owned subsidiary of GMAC Financial Services. Its principal business is to provide various General Motors and Chrysler dealers in Canada with the automotive financing necessary to acquire and maintain vehicle inventories and to provide Canadian retail customers with the means to finance vehicles through both GM and Chrysler.
The funds obtained through the CSCF program will primarily be used by GMAC Canada to extend financing to Canadian GM and Chrysler dealers and their customers to purchase or lease vehicles.
"We are pleased to finalize this significant transaction, which will enhance access to credit for Canadian consumers who are seeking to finance the purchase or lease of a vehicle," said Paula Cruickshank, Vice-President of Securitization at BDC. "This increased credit provides important support to the domestic automotive industry."
A total of $12 billion was allocated to the CSCF in the 2009 federal budget, and is being made available 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; Chris McNamee, GMAC Financial Services, (212) 884-7935, email@example.com