Aviation News Item: 01088

27th Jul 2009

Source: fly-corporate.com

The Solidarity Fund QFL and Societe generale de financement du Quebec (SGF) have created a limited partnership to provide qualifying customers competitive lease financing for CAE's civil flight simulation equipment manufactured in Quebec and exported around the world.

The investments of the Solidarity Fund QFL and SGF are made within the framework of the new joint fund of $500 million announced in the latest budget of the Quebec Government.

The partners have invested US$3 million (C$3.3 million) in equity to create the limited partnership based on the following holdings: SGF 40.25%, Solidarity Fund QFL 40.25% and CAE 19.5%. The partners also committed to fund the partnership with up to US$60 million (C$66 million) in debt, in the following proportions: SGF 37.5%, Solidarity Fund QFL 37.5% and CAE 25%. Qualifying customers may access financing under this structure, which would be in addition to financing of up to 85% of the equipment value available from Export Development Canada.

"Our partnership with the Solidarity Fund QFL and SGF gives us greater flexibility to meet our customers' needs," said Robert E. Brown, CAE President and Chief Executive Officer.

SGF President and General Manager, Pierre Shedleur commented, "This innovating financing solution boosts Quebec exports and represents the opportunity to preserve jobs in a sector of activity with high economic impact".

"The Solidarity Fund QFL supports the implementation of this new financial tool. This initiative comes at the right time, in the current economic climate where capital is more difficult to find," statedYvon Bolduc, President and Chief Executive Officer of the Solidarity Fund QFL.

More Aviation News...