Capital régional et coopératif Desjardins celebrates its 15th anniversary with a strong performance by its portfolio of SMEs and cooperatives
Shares of CRCD reach a new high of $13.26
Highlights as at December 31, 2016
- Share price: $13.26, up $0.65 compared with $12.61 as at December 31, 2015
- Net earnings: $86.0 million compared with $74.8 million in 2015
- Annual return: 5.3%
- Net assets: $1,789.4 million
- Investments impacting the Québec economy portfolio return: 12.6%
- Other investments portfolio return: 2.9%
- Amounts committed by CRCD and its partner funds: $1,016 million in 417 SMEs and cooperatives
- Jobs maintained or created by CRCD and its ecosystem: over 71,300
Montréal – Capital régional et coopératif Desjardins (CRCD) announced today it has reached a new historic high as its share price has risen to $13.26, a gain of $0.65 compared with the price a year earlier. CRCD generated net earnings of $86.0 million in 2016 for an annual return of 5.3%. Net assets stood at $1,789.4 million as at December 31, 2016, up 9.0% compared with the previous year.
CRCD’s strong results stem primarily from Investments impacting the Québec economy and Other investments, which generated returns of 12.6% and 2.9%, respectively.
Says Jacques Plante, Chairman of the Board, “CRCD has generated positive returns for eight years thanks to balanced financial asset management. It’s what enables us, year after year, to stay true to our mission to drive regional economic development and offer reasonable long-term return for our shareholders. This is reflected by the share’s compound return of 4.5%[i] over a seven-year horizon, the required minimum holding period for CRCD shares, in addition to the tax credit obtained at purchase time.”
In addition, as at December 31, 2016, CRCD and its partner funds had commitments of $1,016 million in 417 companies, cooperatives and funds, contributing to the creation and retention of some 71,300 jobs. Of these companies, 298 were located in administrative regions other than Montréal and the Capitale-Nationale and represent total assistance of $595 million. Furthermore, 21 cooperatives received support of $165 million.
15 years driving growth for Québec flagships
“With net assets of nearly $1.8 billion, CRCD is celebrating its fifteenth anniversary with a patient capital balance sheet that speaks for itself,” noted Luc Ménard, Chief Operating Officer of CRCD’s manager, Desjardins Business Capital régional et coopératif. “Since 2002, $2 billion has been invested in over 830 SMEs and cooperatives that have driven job creation across Québec. In 2016 alone, 109 companies enjoyed the benefits of new commitments by CRCD and its partner funds totalling $160 million. The number of startup and technology innovation projects receiving support accounted for 28% of those 109 investments, expansion projects represented 42%, and 30% was invested to back mature companies and business transfers.”
Share ownership in 2016
Last fall, pre-subscription applications exceeded the maximum authorized amount of $135 million for the 2016 issue. All available shares were allocated to investors selected under the established process. As at December 31, 2016, registered subscriptions amounted to $133.4 million. The balance of $1.6 million will be sold no later than February 28, 2017, the deadline for the last investors selected to finalize their transactions. During fiscal 2016, share redemptions totalled $70.4 million.
Pre-subscription for the 2017 issue scheduled for autumn
As in 2016, the next issue of CRCD shares will take place in autumn 2017. The limit for the 2017 issue has been set at $135 million by the Québec government, and the tax credit remains at 40%. The annual maximum subscription amount per person will remain at $3,000 to ensure greater accessibility. Pre-subscription will take place via the secure online form (www.desjardins.com/crcd) that has been used successfully since 2015.
The pre-subscription period will run for three weeks, from 9 a.m. on Tuesday, September 5 to midnight on Monday, September 25, 2017. Investors with no Internet access may stop by the caisse of their choosing for assistance completing the form. Investors are not required to be or to become a member of a Desjardins caisse to subscribe for CRCD shares.
About Capital régional et coopératif Desjardins
With more than 104,000 shareholders, Capital régional et coopératif Desjardins (CRCD) is a public company with $1,789 million in net assets. CRCD contributes to Québec economic development through several levers developed with its manager, Desjardins Business Capital régional et coopératif. These levers, with CRCD as the driving force, form its entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. Through its ecosystem, CRCD supports the growth of nearly 420 businesses, cooperatives and funds in various industries spanning all Québec regions, helping to create and retain more than 71,300 jobs. (www.capitalregional.com)
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For journalists only
[i] Compounded return of the shares was 5.2% for one year, 4.4% for three years, 3.8% for five years and 2.6% for ten years. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all dividends or distributions and do not take into account any income taxes payable by any shareholder that would have reduced returns. The CRCD shares are not guaranteed, their value fluctuates and their past performance is not indicative of their future returns.