BDC paid a dividend of $68.6 million to its sole shareholder, the Government of Canada, and it will make an additional payment of $59.6 million in dividends on common shares in fiscal 2014
MONTREAL—Robust small and medium-sized enterprise (SME) investment activity increased demand for Business Development Bank of Canada (BDC) financing and services.
The crown corporation said its fiscal year ending March 31 2013, BDC’s clients accepted a total of $4.3 billion in loans and subordinate financing. BDC also authorized $145.3 million in venture capital investments and undertook 2,180 consulting mandates.
“The overall strength of the investment climate in Canada has permitted our clients to do well financially, and ultimately this is reflected in our performance,” said Jean-René Halde, BDC’s President and Chief Executive Officer. “As a growing number of entrepreneurs choose BDC as a complement to their financial institution, we continue to serve them in an increasingly efficient and cost effective manner.”
In fiscal 2013, BDC paid a dividend of $68.6 million to its sole shareholder, the Government of Canada, and it will make an additional payment of $59.6 million in dividends on common shares in fiscal 2014.
In 2011, as part of its Digital Economic Strategy, the federal government asked BDC to earmark $200 million to help tackle Canada’s productivity challenge, which can in part be attributed to insufficient investments in technology. During fiscal year 2012, BDC launched its strategy to help entrepreneurs better utilize Information and Communications Technology (ICT). The results surpassed original projections, demonstrating that they have been well received by SMEs. Since implementation of the strategy, BDC has authorized 1,626 loans for a total of $131.9 million.
Key Highlights for 2013: