National Bank Buys Silicon Valley Bank's Canadian Portfolio

By Robb M. Stewart

National Bank of Canada is buying the commercial loan portfolio of Silicon Valley Bank's Canadian branch in a move to cement its position in technology banking.

The Canadian lender said Tuesday it will diversify its commercial loan portfolio in the country with the acquisition of a portfolio in the technology, life science and global fund banking sectors. The portfolio comprises about 1 billion Canadian dollars ($752.2 million) in loan commitments, of which roughly C$325 million are outstanding.

The bank plans to integrate the assets into its technology and innovation banking segment, which had been led by Tuyen Vo since 2019.

The purchase price wasn't disclosed by National Bank, which said the transaction isn't expected to have a material impact on its consolidated results. Closing of the deal is expected in the coming weeks and is subject to conditions including approval by the Ontario Superior Court of Justice, which is supervising the proceedings of Silicon Valley Bank under the country's Winding Up and Restructuring Act.

U.S. regional bank First Citizens Bancshares earlier this year bought large pieces of Silicon Valley Bank weeks after the lender's collapse. Regulators took control of Santa Clara, Calif.-based Silicon Valley Bank in March, with Canada's Superintendent of Financial Institutions taking control of the Canadian branch assets and the Ontario Superior Court of Justice granting a winding-up order.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

August 01, 2023 09:22 ET (13:22 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.