Canadian Imperial Bank of Commerce says it has committed to spend $2 billion to help small and medium-sized defence-related businesses grow in a sector that has increasingly become important for boosting Canada’s economy.
“Canadian companies in the defence and resiliency ecosystem are poised to play a critical role in strengthening our economy, advancing innovation and enhancing national resilience,” Susan Rimmer, CIBC’s head of commercial banking, said in a statement on Thursday. “We are bringing together funding, sector expertise, market access and strategic connections to help Canadian businesses.”
Businesses that can receive funding include those belonging to the energy, cybersecurity, digital capability, infrastructure and advanced technology sectors.
Prime Minister Mark Carney’s government has been looking to accelerate key energy projects and increase investments in the defence sector as a way to boost Canada’s economy and reduce its reliance on the United States.
On Wednesday, Royal Bank of Canada announced a $1.4-billion initiative to invest in Canadian technology companies that have the potential to become global powerhouses. The lender will look to make direct equity investments in Canadian companies.
CIBC chief executive Harry Culham said the bank’s $2-billion commitment reflects its confidence in Canadian businesses and its determination to help them access the financial support they need to scale and succeed.
“Canadian businesses in the defence and resiliency ecosystem have the expertise and ambition to lead,” he said in the statement.
Ottawa’s push to expand its defence sector is one of the most significant financing initiatives in Canada’s history, Culham said in May.
“Let me be clear: we recognize the urgency of this moment,” he said at a conference back then. “This presents a once-in-a-generation opportunity to invest in our economy.”
nkarim@postmedia.com