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Vancity taps international markets

Vancity taps international markets with syndicated deposit

Vancouver, BC, November 3, 2005 – Vancity, Canada’s largest credit union, has completed a $290 million syndicated deposit from six European financial institutions and one US bank.

The syndicated deposit was completed a few months ago and the names of the participating organizations were recently announced in Germany.

Led by BayernLB, a German regionalized central bank, the deposit included: BAWAG Bank für Arbeit und Wirtschaft AG, HSH Nordbank AG Luxembourg Branch, LRP Landesbank Rheinland Pfalz, DekaBank Deutsche Girozentrale, Wachovia Bank, National Association and Landesbank Baden-Württemberg.

The deal follows the announcement last fall that Vancity was the first member-owned retail credit union in North America to be publicly rated by Dominion Bond Rating Service (DBRS). Its first issuance, a $200-million commercial paper program, sold out in 24 hours.

“European investors traditionally like Canadian opportunities and what’s exciting about this deal is that it’s opened up a whole new world for us in terms of increasing our liquidity,” says Vancity Treasury Vice-president Ray Hama.

While Vancity has been issuing bonds to European investors since the 1980s, this is its first syndicated deposit.

Vancity is Canada’s largest credit union, with $10.5 billion in assets, more than 315,000 members, and 43 branches throughout Greater Vancouver, the Fraser Valley and Victoria. Vancity was chosen as the best place to work in Canada for 2005 by Maclean’s Magazine as part of its annual Canada’s Top 100 Employers issue. Vancity owns Citizens Bank of Canada, serving members across the country by telephone, ATM, and the Internet. Both Vancity and Citizens Bank are guided by a commitment to corporate social responsibility, and to helping members and communities thrive and prosper.