TORONTO, April 9 (Reuters) - Royal Bank of Canada RY.TO plans to deploy up to C$1 billion over the coming years to form a growth fund and make equity investments to support homegrown companies, CEO Dave McKay said on Thursday.
The lender, Canada's largest, is making the investment to support economic growth in the country, McKay said. Several Canadian entrepreneurs seek foreign capital to build homegrown companies, which often means leaving their home market, McKay said. "It’s time to shift that narrative," he said at the company's annual shareholder meeting.
Here are some details:
RBC will deploy capital to help companies build and scale in Canada. The bank has also backed quantum computing, climate tech and healthcare companies in the past.
The lender plans to provide lending, underwriting and advisory services to support major projects in the country and close Canada’s funding gap.
RBC says its research shows that Canada needs C$1.8 trillion in capital investment over the next decade to finance major projects. "The vast majority of this capital must come from the private sector. Government simply cannot - and should not - fund it alone," McKay says.
McKay said the bank is also hiring and expanding services in sectors of national importance such as defence, infrastructure, and project financing. That includes a focus on the Far North and Indigenous partnerships and helping Canadian companies expand abroad, he said.
(Reporting by Nivedita Balu in Toronto; Editing by Kirsten Donovan)
((Nivedita.Balu@thomsonreuters.com ; +1-343-401-6776))
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