Desjardins Group is issuing new shares worth $500 million following the success of last year’s first issue of $1.5 billion in capital shares, the Lévis, Quebec-based financial co-operative said today.
Offered exclusively to Desjardins caisse members in Quebec, these capital shares are issued by the Fédération des caisses Desjardins du Québec and sold through the caisse network. The shares are issued in order to boost the capitalization of the caisses and Desjardins Group.
The capital shares have a par value of $10 and the minimum amount for each subscription is $100. The interest rate is set annually and may not exceed the greater of the average annual yield for 5-year Government of Canada bonds or 4.25%.
For caisse members, acquiring these shares represents a long-term investment with good return potential and a great way to achieve healthy portfolio diversification.
“Desjardins ranks among the most stable financial institutions in the world and this is in large part thanks to its capitalization,” said Monique Leroux, chairwoman of the board, president and CEO of Desjardins Group. “This advantage also protects the company from economic fluctuations while allowing for growth which benefits its members and clients.”
Desjardins Group is the leading co-operative financial group in Canada and the fifth largest co-operative financial group in the world with assets of $210 billion.