The Caisse de dépôt et placement du Québec is closing a $125 million financing deal with Meridian Credit Union Ltd.
The investment takes the form of subordinated private debt aimed at helping Meridian continue its growth, as well as diversify its products and services.
Meridian offers both commercial and personal loans, credit cards, insurance services, mortgages and wealth management. It has a network of 92 branches in Ontario and 14 business banking centres.
“CDPQ is delighted to partner with Meridian, a leader in the Canadian financial cooperative landscape,” said Marc Cormier, executive vice-president and head of fixed income at the Caisse, in a press release. “Meridian has experienced stable growth in terms of both assets and membership over several years, and as such fits naturally with our investment strategy.”
Read: Back to basics on private credit
In other investing news, the Ontario Teachers’ Pension Plan is making a US$300-million deal with New Gold Inc.
Through the transaction, the Ontario Teachers will acquire a 46 per cent free cash flow interest in the miner’s New Afton mine with two options going forward. Either the plan will exercise the option to convert the interest into a 46 per cent joint venture interest in four years, or it will have its interest remain as a free cash flow interest at a reduced rate of 42.5 per cent.
“In this distinct transaction, we gain access to a free cash flow interest from a top-quality asset in a stable and well-established mining area, with the ability to convert to a [joint-venture] interest in four years,” said Dale Burgess, senior managing director of infrastructure and natural resources at the Ontario Teachers’, in a press release.
“Ontario Teachers’ natural resources group has a global mandate to pursue investments that provide attractive returns and inflation protection through exposure to a basket of key commodities.”
Read: In a negative yield world, is gold ready for a comeback?