Caisse de depot subsidiary may issue up to C$8 billion of bonds

By Jennifer Chiou

New York, Nov. 13 - Caisse de dépôt et placement du Québec announced that its financial subsidiary could issue up to C$8 billion of bonds as part of a refinancing program to replace some of its short-term debt with longer term debt.

The company said that this represents another step in its plan to reduce risk and simplify its activities.

Under the program, Caisse de depot's financial subsidiary may issue the bonds in Canada, the United States and Europe by the end of 2010, depending on market conditions.

"By limiting our exposure to the uncertainties inherent in short-term funding and by better matching the duration of our sources and uses of financing, the refinancing program is another important element of our plan to reduce financial risks and to strengthen the foundations of the Caisse," Michael Sabia, president and chief executive officer, said in a news release.

Caisse de depot noted that its goal is to continue to reduce its use of leverage.

Based in Montreal, the Caisse de depot is a financial institution that manages funds primarily for public and private pension and insurance plans.

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