Silicon Valley Bank to Begin Sale of Canada Loans Next Month

The Canadian unit of Silicon Valley Bank is preparing to kick off the sale of its loan book in May and is nearly finished setting up a data room for potential buyers, according to people familiar with the matter.

(Bloomberg) — The Canadian unit of Silicon Valley Bank is preparing to kick off the sale of its loan book in May and is nearly finished setting up a data room for potential buyers, according to people familiar with the matter.

SVB crumbled in early March when its capital-raising plans failed, leaving it exposed to a bank run in which depositors tried to pull out $42 billion in one day. Canada’s banking regulator, the Office of the Superintendent of Financial Institutions, took control of SVB’s local branch on March 12 and days later got a court order to wind up the operation, appointing PricewaterhouseCoopers to oversee it.

The Canadian branch of SVB, which had a license to lend but could not accept retail deposits, was small — just $278.2 million in outstanding loans as of March 10, according to a report by PwC. The portfolio wasn’t included in the sale of SVB assets to First Citizens BancShares Inc.

The loan book includes over 135 existing borrowers primarily in the technology, life sciences and clean technology industries. It consists of term loans, revolving lines of credit, and venture capital and private equity call facilities, according to PwC, which did not immediately respond to a request for comment.

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