Lazard in Talks for Advisory Role on Canada Business Loans Plan
Lazard in Talks for Advisory Role on Canada Business Loans Plan
(Bloomberg) -- The Canadian government is in talks to hire Lazard as the financial adviser for its new loan program for large companies, according to a person familiar with the matter.
The program, known as the Large Employer Emergency Financing Facility, will allow firms with at least C$300 million ($214 million) in annual revenue to apply for credit if they can’t get it from banks or other sources. The plan, announced Monday by Prime Minister Justin Trudeau, is aimed at preventing bankruptcies of otherwise viable firms that have been hit hard by Covid-19.
Companies in all sectors except the finance industry can apply.
For such programs, the government would typically seek advice from a non-Canadian investment bank to avoid conflicts of interest that could arise from using a domestic bank, according to another person familiar with the matter.
A spokeswoman for Lazard declined to comment. The Department of Finance declined to comment, saying it will have more details on the loan program in the coming days.
©2020 Bloomberg L.P.