Securitization

A financing option for finance and leasing companies

Securitization is a form of debt financing that relies on the pooling of illiquid assets (e.g. loans or leases) to mitigate some of the underlying risks. Securitization enhances companies’ access to capital markets funding on potentially better financial terms than those of more typical commercial lending.

Funding Platform for Independent Lenders (F-PIL)*

*F-PIL was formally known as the Vehicle and Equipment Financing Partnership (VEFP)

The Funding Platform for Independent Lenders (F-PIL) is a public-private partnership between BDC and TAO Asset Management Inc. (TAO). The partnership provides small and medium-sized finance and leasing companies, which may not have expertise or transaction volumes to cost-effectively establish their own programs, with an economical and efficient way to access the securitization market. F-PIL is geared towards the purchase of term asset-backed securities backed by loans and leases on vehicle and equipment.

Highlights of F-PIL

  • Revolving, committed funding facilities can be provided to companies that qualify for financing
  • Financing facilities will involve a common structure to facilitate the timing, cost effectiveness and ease of completion of transactions
  • Funding will be provided on a match-funded basis, e.g. contracts to be funded for their entire term
  • Transactions will not be formally rated, although transactions will be structured using published rating agency methodologies
  • Financing will be provided on commercial terms
  • There is no minimum transaction size

Securitization Investment Opportunities

Third Party Investors are welcome to participate with BDC to purchase offered securities.

Contact us

Companies interested in accessing F-PIL funding through the BDC-TAO Partnership should contact:
James Joyce at 416 309-9320. For more details on this program, visit our partner's website at: www.taoasset.ca

Funding Platform for Independent Lenders (F-PIL) (PDF)

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