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Ottawa Could Go Further to Boost Access to Capital for Defence Businesses, Says BMO CEO
BMO is adding a new defence sector chair and expanding lending as federal procurement and infrastructure spending create more financing demand, White said.
- On Wednesday, BMO Financial Group launched a three-day defence finance forum in Toronto, with CEO Darryl White stating the bank is "responding to the signal" from Canada's federal government regarding increased defence spending commitments.
- Federal projections of $290 billion in infrastructure projects and $180 billion in direct defence procurement prompted the strategic shift. Last month, BMO unveiled plans to mobilize up to $70 billion in new capital over 10 years for critical sectors including defence.
- BMO appointed Michael Bonner as enterprise chair of the Canadian defence sector to coordinate government liaison and procurement matters. Competitors CIBC and TD Bank committed $2 billion and $150 billion respectively to similar defence financing initiatives.
- Canada's pledge to spend 5% of annual GDP on defence by 2035 could generate about $150 billion in annual economic impact, according to BMO economists. White said "the probability of getting there is high" given procurement and infrastructure commitments.
- White cautioned that "summits are generally not where deals get done," emphasizing a "gestation period" between investor interest and actual transactions. The bank is currently focused on laying groundwork for future defence sector deals.
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Economic Studies BMO: Canada's commitment to the "5% of annual GDP by 2035" commitment
·Montreal, Canada
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Coverage Details
Total News Sources13
Leaning Left5Leaning Right0Center2Last UpdatedBias Distribution71% Left
Bias Distribution
- 71% of the sources lean Left
71% Left
L 71%
C 29%
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