La Caisse de dépôt et placement du Québec is contributing $75 million in the form of a subordinated private debt to Medavie Inc.

Medavie operates Medavie Blue Cross, an insurance carrier that provides health, dental, travel, life and disability benefits, as well as administers various government-sponsored health programs.

“Because of its resilience to economic cycles and the stable returns it generates over a long-term horizon, the insurance sector is perfectly in line with our credit strategy,” said Marc Cormier, executive vice-president of fixed income at the Caisse, in a press release.

Read: Caisse rounds out 2018 with 4.2% return

The transaction will provide Medavie with additional capital while it moves forward with growth initiatives, noted the release.

“Our financials are strong and trending for continued growth, and we are pleased to work with the Caisse on an investment structure that best suits our overall needs,” said Bernard Lord, chief executive officer at Medavie.

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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