Desjardins raises capital for acquisitional expansion

Le Mouvement des caisses Desjardins plans to raise US$ 400 million this coming fall to finance acquisitional growth outside of the Quebec market, specifically with the intent of acquiring insurance and brokerage interests.The Quebec-based financial services co-operative will issue debentures in terms of the offering, says president Alban D’Amours. Desjardins carried through a similar offering last year in the U.S., and raised US$200 million. The company purchased the property and casualty insurance interests of CIBC last year. It is also currently waiting regulatory approval of a merger between Imperial Life and Desjardins-Laurentian Life Assurance, which as a combined operation would rank as Canada’s seventh largest life insurer with assets under management in excess of $13 billion and annual premiums of around $1.5 billion.