(Bloomberg) -- National Bank of Canada has agreed to buy the Canadian commercial loan portfolio of Silicon Valley Bank as part of a broader strategy to expand its footprint in the nation's tech sector.
The portfolio is comprised of approximately C$1 billion ($752 million) in loan commitments of which around C$325 million are outstanding, the bank said in a statement.
Under the terms of the agreement, National Bank will acquire a portfolio in the Technology, Life Science and Global Fund Banking sectors. The acquisition will be folded into National Bank's Technology and Innovation Banking Group, under the leadership of Tuyen Vo, who has led the group since 2019.
“With this acquisition and following years of high growth by the Technology and Innovation Banking Group, the bank strengthens its presence in the tech industry across Canada,” said Michael Denham, Executive Vice-President of commercial and private banking at National Bank.
The deal is expected to close in coming weeks, subject to approval. The transaction is not expected to have a material impact on the bank's results.
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