MONTREAL, July 7 /CNW Telbec/ - The Business Development Bank of Canada (BDC) today announced it has formed a partnership with Sun Life Financial to facilitate funding under the Vehicle and Equipment Financing Partnership (VEFP).
The VEFP was announced by the Federal Government 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. This is the second initiative announced under the VEFP.
"This partnership is yet another strong example of the BDC's commitment to improve access to financing for small and medium-sized finance and leasing companies through collaboration with a well-established market participant like Sun Life," said BDC President and CEO Jean-René Halde. "Given the continuing challenges in the credit markets, enhanced incremental financing options such as the ones created by this partnership will ensure originators are able to respond to demand, which will in turn help support the reinvigoration of the Canadian economy."
This partnership will enable small and medium-sized leasing and financing companies to access incremental financing through Sun Life's private securitization model. The latter is a unique model presenting various advantages compared to traditional securitization. Under the arrangement, Sun Life will maintain the customer relationships and administrative control over all transactions. Amongst other, Sun Life will determine the approval process and lending conditions. BDC will participate in certain facilities subject to its lending criteria and will share the overall risk.
"With more than 20 years experience funding small and mid-sized leasing and financing companies in Canada, Sun Life is able to offer flexible solutions that better enable these companies to access financing," said Stephen Peacher, Executive Vice-President and Chief Investment Officer for Sun Life Financial. "Our Lease Finance business has annual funding volumes of approximately $800 million, a market leading position and is a significant portion of our private investment activity."
Companies interested in obtaining additional information should contact: Neil Cameron, Managing Director, Head of Lease Finance, Private Fixed Income, Sun Life Financial, (519) 888-2366.
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.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31, 2010, the Sun Life Financial group of companies had total assets under management of $435 billion. For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
Note to Editors: All figures in Canadian dollars.
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; Kathleen Killen, Media Relations Manager, Sun Life Financial, (416) 979-6097, email@example.com