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National Bank of Canada increases its stake to 100% in Credigy Ltd.

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MONTREAL, Dec. 2, 2020 /CNW Telbec/ - National Bank of Canada announced that it is increasing its stake to 100% in Credigy Ltd. National Bank of Canada became a shareholder of Credigy in 2006 and subsequently increased its stake to 80%.

Logo: National Bank of Canada (CNW Group/National Bank of Canada)
Logo: National Bank of Canada (CNW Group/National Bank of Canada)

Founded in 2001 and headquartered in Atlanta, Georgia, Credigy is a global specialty finance company with flexibility to acquire or finance a diverse range of assets. Credigy invests in consumer-related assets across multiple asset classes and geographies. Since its foundation Credigy has closed more than 320 deals, representing over USD 16 billion invested to date.

"National Bank is proud of Credigy's performance since its initial investment in 2006. Credigy has greatly exceeded our growth and return expectations and we continue to see attractive potential for growth in the future," said Louis Vachon, President and Chief Executive Officer of National Bank of Canada.

The transaction follows the decision by the management team members to exercise their options to sell their common shares. Credigy's CEO Brett Samsky commented that "the senior management team members reiterate their personal commitment to leading the next stage of Credigy's growth strategy, as well as their confidence in the future prospects for the Company." "The proceeds from the sale of shares will be used for estate planning, asset diversification and to fund philanthropic projects," added Mr. Samsky.

For fiscal year 2020, the additional 20% stake acquired in Credigy would have increased National Bank's diluted earnings per share by $0.07. The transaction will have no impact on common equity Tier 1 capital ratio according to Basel III.

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 $332 billion in assets as at October 31, 2020,
National Bank of Canada, together with its subsidiaries, forms one of Canada's leading integrated financial groups. It has more than 26,500 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). Follow the Bank's activities at nbc.ca or via social media such as Facebook, LinkedIn and Twitter.

SOURCE National Bank of Canada


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