Business · Companies · 1 hr ago
Canada plans to merge financing agencies and create a $25-billion fund
Canada’s federal budget proposes merging the Business Development Bank and Export Development Canada into one development bank for businesses at home and abroad.
The two Crown corporations together have 5,100 employees and $128-billion in assets.
The government says the changes aim to simplify a system of financing agencies criticized for overlap and complexity.
It also plans to establish the $25-billion Canada Strong Fund as an independent Crown corporation with its own chief executive and board.
The fund would take minority equity stakes in strategically important companies and projects, including through co-investments.
Guaranteed securities are planned for 2027 to help seed the fund, which could invest in companies including technology firms.
Canada plans to launch guaranteed securities in 2027 to raise money for its sovereign wealth fund.
The Canada Strong Fund is intended to take minority equity stakes in strategically important projects and companies.
The fund may invest in companies including technology firms.
The federal budget proposes establishing the fund as a standalone, arm’s-length Crown corporation with its own chief executive and board.
The fund was announced in April as Canada’s first national sovereign wealth fund.
- Who
- The Canadian government.
- What
- It plans to launch guaranteed securities to seed the Canada Strong Fund, a sovereign wealth fund that can invest in company equity.
- When
- Early in 2027.
- Where
- Canada.
- Why
- To raise money for the sovereign wealth fund to invest in companies and strategically important projects.
This story does not have two clearly opposing sides.
The Canada Strong Fund was announced as the country’s first national sovereign wealth fund.
The government plans to launch guaranteed securities to seed the fund.
- Planned launch
- Early 2027
- Fund name
- Canada Strong Fund
- Fund structure
- Standalone, arm’s-length Crown corporation
- Investment approach
- Minority equity stakes in strategically important projects and companies
- Possible investment sector
- Technology firms
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first national sovereign wealth fund