Dec 3: Vancity's first commercial paper issuance raises $200 million in 24 hours

Vancouver, December 3, 2004 – Vancity Credit Union’s first issuance as a publicly rated financial institution has sold out in 24 hours.

The issuance of a $200-million commercial paper program was met with a positive response from the investment market.

“Interest in our program has been overwhelming,” says Ray Hama, Vancity’s vice-president of Treasury. “Given the demand, it shows that, not only did we enter the market at the right time, but the take up of our commercial paper by the investment community across Canada certainly supports the Vancity name and our reputation as a leading financial institution.”

Commercial paper programs are used by well-established financial institutions backed by credit ratings to diversify funding sources and reduce funding costs. The product offers a higher return than Treasury bills, while remaining liquid and flexible. This program will help Vancity continue to meet its members’ and communities’ financing needs.

Last month, Vancity became the first member-owned retail credit union in North America to be publicly recognized with an investment grade financial short-term credit rating from Dominion Bond Rating Service. The rating validates Vancity’s financial sustainability, strengthens its industry position in terms of greater capital markets access and translates its status into an eligible investment grade offering for institutional or corporate investors.

Vancity is Canada’s largest credit union, with $9.3 billion in assets, 305,000 members, and 41 branches throughout Greater Vancouver, the Fraser Valley and Victoria. Vancity was chosen as the best place to work in Canada for 2005 by Maclean’s Magazine as part of its annual Canada’s Top 100 Employers issue. Vancity owns Citizens Bank of Canada, serving members across the country by telephone, ATM, and the Internet. Both Vancity and Citizens Bank are guided by a commitment to corporate social responsibility, and to improve the quality of life in the communities where we live and work.