The portfolio includes $1 billion worth of tech, life science, and global fund loans
National Bank of Canada (NBC) has announced that it is acquiring the commercial loan portfolio of Silicon Valley Bank’s Canadian branch.
The portfolio, which is composed of technology, life science, and global fund loans, is said to be worth over $1 billion in loan commitments which around $325 million are outstanding. NBC is planning to integrate the portfolio into its technology and innovation banking group which is headed by Tuyen Vo.
"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 in a press release.
"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," he added.
The bank said that the deal is still set to close in the coming weeks and will still need the approval of the Ontario Superior Court. The court is responsible for the supervision of Silicon Valley Bank in the country under the Winding Up and Restructuring Act.
Silicon Valley Bank, based in the US, suffered a high-profile collapse earlier this year in a development that sent tremors across the banking system south of the border.
