Saskatchewan, January 14, 2015 – Concentra Financial (Concentra), Canada’s only co-operative financial services association, has secured more funding options to help credit unions meet the growing needs of their members.
In mid-December 2014, Concentra successfully contributed a portfolio of loans (pursuant to an agreement) to a MCAP-led Commercial Mortgage-Backed Securities (CMBS) Canadian private placement offering in the Canadian capital markets valued at $213,385,000. By acting as a provider and program partner, Concentra has strengthened its funding capacity to meet the evolving and growing needs of its credit union partners.
As a federally regulated financial institution, Concentra leverages its abilities in the capital markets to offer sophisticated, competitive wholesale solutions to credit unions. “The CMBS initiative is an example of how Concentra continues to build and evolve its operations to secure market relevance for the credit union system”, says Ryan Graham, Senior Vice-President, Financial Intermediation.
Credit unions are becoming larger and more complex. In order to compete with other financial institutions, they require concrete solutions to deal with the challenges related to managing capital and liquidity.
“By sourcing capital market-based funding solutions like CMBS, credit unions are able to fund larger, longer-dated commercial mortgages at competitive rates. As a result, credit unions generate income, diversify their portfolio, enhance their ability to retain members and target larger relationships,” explains Graham.
The Canadian CMBS market has returned to being a viable funding option for commercial mortgages, meeting the needs of investors through the rated securities created in the process. “We believe in this product as a win-win for credit unions and their members,” says Graham.
About Concentra Financial
Concentra exists to enhance the success of Canadian credit unions and their members by delivering competitive, high-quality national wholesale and trust solutions. Owned by credit unions, centrals, and other co-operative partners, Concentra is a federally regulated financial institution with approximately $7 billion in assets and $29 billion in assets under administration.
Concentra leverages its regulatory capacity, national network, and industry solutions to help credit unions optimize financial performance, diversify risk and meet member needs. Serving more than 300 credit unions across Canada, representing over $161 billion in system assets, Concentra is committed to be a valued and strategic partner to the system.
A Credit Union Company