National Bank of Canada has announced its acquisition of the commercial loan portfolio of Silicon Valley Bank's Canadian branch. This strategic move aims to solidify the bank's position in the technology banking sector.
In a recent statement, the Canadian lender revealed its plans to diversify its commercial loan portfolio in the country by acquiring a portfolio that focuses on the technology, life science, and global fund banking sectors. The portfolio consists of approximately 1 billion Canadian dollars ($752.2 million) in loan commitments, with around C$325 million still outstanding.
National Bank intends to seamlessly integrate these assets into its technology and innovation banking segment, a division that Tuyen Vo has overseen since 2019.
While the exact purchase price was not disclosed, National Bank emphasized that the transaction is not expected to have a significant impact on its consolidated results. The deal is anticipated to be finalized within the next few weeks, pending approval from the Ontario Superior Court of Justice, which is responsible for overseeing Silicon Valley Bank's proceedings under Canada's Winding Up and Restructuring Act.
Earlier this year, U.S. regional bank First Citizens Bancshares also acquired substantial portions of Silicon Valley Bank following the latter's collapse. In March, regulators assumed control of Silicon Valley Bank, headquartered in Santa Clara, California. The Canadian branch assets were subsequently placed under the supervision of Canada's Superintendent of Financial Institutions, and the Ontario Superior Court of Justice issued a winding-up order.