Acquisition aligned with National Bank’s commitment to the
Canadian Tech industry
PRESS RELEASES
National Bank reaffirms leadership in the Technology Banking space through acquisition of Silicon Valley Bank’s Canadian portfolio
Montréal, August 1, 2023
- Accelerates growth of the Technology and Innovation Banking group across Canada
- Excellent fit with National Bank’s track-record with entrepreneurs and entrepreneurial culture
- Support for dynamic Canadian technology-based companies that drive innovation
National Bank (the "Bank") announced today that it has entered into an agreement to acquire the commercial loan portfolio of Silicon Valley Bank’s Canadian branch.
Under the terms of the agreement, the Bank will acquire a portfolio in the Technology, Life Science and Global Fund Banking sectors, further diversifying its commercial loan portfolio across Canada. The portfolio is comprised of approximately CAD 1 billion in loan commitments of which around CAD 325 million are outstanding. The assets will be integrated into National Bank’s Technology and Innovation Banking Group, under the leadership of Tuyen Vo, Head of this group since 2019.
For over 25 years, the Bank has been supporting companies and investors in the tech sector. Through a team of dedicated experts, the Bank offers full-service banking and tailored advice on venture-lending products, growth and M&A financing, treasury and foreign exchange management, investment banking advisory and private management services, as well as direct investments in fintechs via its corporate venture capital arm.
"With this acquisition and following years of high growth by the Technology and Innovation Banking Group, the Bank strengthens its presence in the tech industry across Canada," said Michael Denham, Executive Vice-President, Commercial and Private Banking at National Bank. "As the Bank keeps expanding, we are thrilled to support Canadian innovation in sectors that offer solutions to the many challenges our society is facing. We are upbeat about the future of technology-based companies and this acquisition demonstrates this."
Closing is expected in the coming weeks and is subject to customary closing conditions, including approval by the Ontario Superior Court of Justice supervising the proceedings of Silicon Valley Bank under the Winding Up and Restructuring Act (Canada). The transaction is not expected to have a material impact on the Bank’s consolidated results.
Caution Regarding Forward-Looking Statements
This press release includes certain forward-looking statements.
These statements are inherently subject to significant risks,
uncertainties and changes in circumstances, many of which are beyond
the control of the Bank, including obtaining the necessary
regulatory approvals, the risks associated with changes in general
economic conditions, and changes made to guidelines on risk-weighted
capital and their interpretation. Except as required by law, the
Bank does not undertake to update any forward-looking statements,
whether written or oral, that may be made from time to time, by it
or on its behalf. The forward-looking information contained in this
press release is presented for the purpose of interpreting the
information contained herein and may not be appropriate for other purposes.
About National Bank of Canada
With $418 billion
in assets as at April 30, 2023, National Bank of Canada,
together with its subsidiaries, forms one of Canada's leading
integrated financial groups. It has approximately 30,000 employees
in knowledge-intensive positions and has been recognized numerous
times as a top employer and for its commitment to diversity. Its
securities are listed on the Toronto Stock Exchange (TSX: NA).
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Information:
Debby Cordeiro
Senior Vice-President, Public Affairs and Corporate Social
Responsibility
National Bank of Canada