BMO and EDC announce collaboration to introduce sustainable financing solutions for Canadian businesses

  • The collaboration will create solutions to help medium and large Canadian companies in carbon-intensive sectors adopt more sustainable business models
  • Aligned with from Canada committed to net-zero emissions by 2050, direct, indirect and future Canadian exporters can explore affordable capital solutions to meet climate goals and move more efficiently to net-zero

TORONTO, May 2, 2022 /CNW/ – BMO Financial Group (BMO) and Export Development Canada (EDC) today announced an agreement to provide sustainable financing solutions to medium and large Canadian exporting companies to help them transition from carbon-intensive to those that can eliminate or significantly reduce emissions. As part of the agreement, BMO is the first financial institution to offer the new EDC Sustainable Financing Guarantee (the Guarantee), a product available under EDC’s Sustainable Financing Program – a key source of financing to enable the support that Canadian businesses will need.

“As part of our goal to boldly develop the good in business and lifeBMO is committed to being our customers’ primary partner in their journey to a net zero world,” said Jonathan Hackett, Head, Sustainable Finance and Co-Head, Energy Transition Group, BMO Financial Group. “Helping customers adapt and thrive through this transition requires a thoughtful, balanced, and accelerated approach informed by science, common sense, and bold yet practical solutions. EDC’s offering represents one of the innovative strategies that will help us achieve these important goals.

The Guarantee is a risk-sharing solution co-developed to increase the ability of Canadian financial institutions, like BMO, to provide businesses engaged in eligible sectors with loans and financing that support their carbon reduction initiatives. The program will provide the first
$1 billion funding over the next three years to support sustainable initiatives, including hydrogen, renewable infrastructure and grid modernization, in nine carbon-intensive sectors. EDC will guarantee up to 50% of BMO’s term loan – up to a maximum of $60 million per obligor, for up to seven years, providing BMO with greater capacity to support the low-carbon transition and export growth of its exporting clients.

“We understand the urgent need to address climate change, and as from Canada export credit agency, we have a role to play,” said Justine Hendricks, Senior Vice President and Chief Sustainability Officer at EDC. “Work with from Canada financial institutions like BMO, we can support Canadian businesses’ access to the financing they need to participate in this important transition Canada and globally. With EDC’s commitment to achieving net zero by 2050, the two organizations are leading the way to help companies innovate and achieve long-term business growth in a sustainable, fair and compliant way. to a low-carbon future.

“BMO’s commitment to sustainable finance and their efforts to help Canadian businesses adapt and remain competitive in an ever-changing global economy aligns with EDC’s objectives, making it a natural candidate to launch this important initiative,said Ms. Hendricks. “Going forward, as we continue to grow our sustainable funding stream, we look forward to working with other financial institutions to help Canadian businesses support the transition to net zero.

To learn more about this offer, customers should contact their BMO representative or email [email protected].

BMO and sustainability

BMO is committed to a sustainable future. Carbon neutral in its own operations since 2010, in 2021 BMO announced its The climate ambition and its commitment to deploy 300 billion dollars in sustainable lending and underwriting to businesses that aim for sustainable results by 2025. BMO strives to be our clients’ primary partner in the transition to a net zero world and, since December 2019, has entered into green and sustainability-related loans for companies in various sectors, with objectives such as sustainability, diversity, health and safety. To support clients in pursuing opportunities driven by the growing momentum of the changing global economy in energy generation and consumption, BMO created an Energy Transition Group in 2021 and the BMO Climate Institute.

BMO’s leadership in sustainability has been recognized in a number of rankings, including The Wall Street Journal’s 100 Most Sustainable Companies in the World, Corporate Knights’ 100 Most Sustainable Companies in the World, the Dow Jones Sustainability World Index and the Ethisphere Institute’s list of the world’s most sustainable companies. Ethical companies.

To learn more about BMO’s commitment to a sustainable future, please see the bank’s sustainability report.. To learn more about sustainable finance at BMO, click here. To learn about BMO’s climate ambition, visit its Climate page.

EDC and sustainability

EDC believes that sustainable practices are key to the success of Canadian businesses and from Canada international competitiveness and prosperity.

The company embarked on this journey more than two decades ago when it first developed in-house non-credit risk management practices. Since then, they have become one of the largest cleantech financiers in the Canadawere the first Canadian financial institution to issue a green bond and the first export credit agency to commit to net zero by 2050.

Today, they continue to make tangible progress towards their net zero goal and act as a convener and partner to the many stakeholders who will be needed to make net zero a reality for Canada and Canadian companies.

About BMO Financial Group

Serving customers for 200 years and counting, BMO is a highly diversified financial services provider – the 8th largest bank, by assets, in North America. With total assets of $1.02 trillion as of January 31, 2022 and a diverse and highly engaged team of employees, BMO offers a wide range of personal and commercial banking, wealth management and investment banking products and services. investment to more than 12 million customers and leads through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.

About EDC

Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian businesses of all sizes succeed on the world stage. As global risk experts, we equip Canadian businesses with the tools they need – the business knowledge, financing solutions, equity, insurance and relationships – to grow their business with confidence. Underlying all of our support is a commitment to sustainable and responsible business.

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SOURCE BMO Financial Group

For further information: For media inquiries: BMO Financial Group: Kelly Hechler, Media Relations, [email protected], (416) 867-3996; Export Development Canada: [email protected](888) 222-4065

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