EDC big backer of $1B credit fund
OTTAWA – Export Development Canada is becoming the leading backer behind a $1-billion fund to extend credit to struggling Canadian companies.
The Crown corporation has put up $450 million and Toronto-based Brookfield Asset Management Inc. (TSX: BAM.A) another $100 million into the fund that the two parties expect will grow to $1 billion.
Initial investors also include the Canadian Imperial Bank of Commerce and Sun Life Financial Inc.
Credit conditions have been easing in Canada in the past few months, but the July survey of senior fund managers by the Bank of Canada found conditions remained tighter than normal.
In a joint statement, the EDC and Brookfield said the fund would provide debtor-in-possession loans to companies needing protection from creditors while undergoing restructuring or reorganization free car insurance quotes.
"This fund will help Canadian companies gain access to credit during restructuring, when it's most needed," said EDC chief executive Eric Siegel in a statement.
"This new partnership with Brookfield enables us to further assist even more Canadian companies during the current downturn."
Brookfield managing partner Joe Freedman said the available financing will help "viable enterprises emerge from the current recession in a strong competitive position."