Montréal, June 8, 2009 — Société Générale de financement du Québec (SGF) today announced a loan of $ 50M to an affiliate of BRP’s controlling shareholders. The proceeds of this five year loan will be used by the controlling shareholders and their affiliate to invest in BRP in order to support its operations.

Investments made in BRP using proceeds provided by SGF will allow BRP to maintain an optimal level of activities, including more than 3,000 jobs in Québec. "We are pleased to be associated with a company strongly entrenched in Québec and an undisputed leader in the industry", stated Pierre Shedleur, President and General Manager of SGF.

The Government of Québec has modified SGF’s mandate by empowering it to assist companies that have the solid development prospects needed to weather the crisis affecting every level of the economy, particularly the manufacturing sector. Today, SGF is in an excellent position to help BRP through this crisis and enable it to prepare for a renewal of the recreational products market and continue to design high-end sporting goods. “BRP stood out through the launch of new technological concepts, quality designs, and its efforts to manufacture more environmentally-friendly products,” added Mr. Shedleur.

As part of its new mandate, SGF is authorized to expand its traditional role as a share capital investor by offering complementary solutions, such as loans, debentures, or preferred share capital investments.
BRP, a strong symbol of Québec’s economy
In Valcourt, in 1942, as the recipient of the first patent for snow-tractor development, Mr. Joseph-Armand Bombardier founded the company that would manufacture tracked vehicles designed for snow travel, popularized under the name “Ski-Doo”. While snowmobiles were the backbone of the company’s initial growth, BRP soon expanded its product line.


Société générale de financement du Québec (www.sgfqc.com) is an industrial and financial holding company. Its mission is to carry out economic development projects, especially in the industrial sector, in cooperation with partners and in accordance with accepted requirements for profitability and the Government of Québec’s economic development policy.
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Source:
Sophie Alarie
Senior Adviser
Communications and Media Relations
Société générale de financement du Québec
514 876-9368
salarie@sgfqc.com