IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Feb 2015 | Removal date: open ended
Still in force

Loan guarantee

The Canadian airplane manufacturer Bombardier has received support in various forms from the government of Canada and the provincial government of Quebec.
In February, 2015, Bombardier raised $1.1 billion (Canadian) in equity and $2.25 billion (U.S.) in debt, during which time the Caisse was reported to have bought $13.3 million (Canadian) worth of the Bombardier stock. The new report observed that "there is no guarantee Bombardier will close a deal with the Caisse, and the process has been difficult, coming so soon after February's multi-bil dollar debt and equity financing."
In October 2015, Bombardier entered a memorandum of understanding with the Government of Quebec for the provision of a $1.0 billion equity investment, with the proceeds "used entirely for cash flow purposes of the C Series aircraft program."
In February 2016, Bombardier received $1.5 billion from the Quebec's Caisse de Dépôt et Placement du Québec ("CDPQ") in exchange for an interest in Bombardier's transportation assets, which were placed in a new company - Bombardier Transportation (Investment) UK Ltd ("BT Holdco").
Bombardier and the Government of Quebec entered a definitive agreement for the equity investment on 23 June 2016. The Government of Quebec made a payment of $500 million on 30 June 2016 and a second payment of $500 million on 1 September 2016.

On February 7, 2017 the Federal government announced Can.$372.5 million (US$283 million) in repayable loans for two of Bombardier's jet programs. The loans will be provided over four years, in a number of installments.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

495 Railway & tramway locomotives & rolling stock; parts
8603 Selfpropelled railway or tramway coaches, vans and trucks, other than those of heading 86.04.
860390 Other
8606 Railway or tramway goods vans and wagons, not selfpropelled.
860610 Tank wagons and the like
860630 Selfdischarging vans and wagons, other than those of subheading 8606.10
860691 Covered and closed
860692 Open, with nonremovable sides of a height exceeding 60 cm
860699 Other
496 Aircraft & spacecraft; parts
8802 Other aircraft (for example, helicopters, aeroplanes); spacecraft (including satellites) and suborbital and spacecraft launch vehicles.
880211 Of an unladen weight not exceeding 2,000 kg
880212 Of an unladen weight exceeding 2,000 kg
880220 Aeroplanes and other aircraft, of an unladen weight not exceeding 2,000 kg
880230 Aeroplanes and other aircraft, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg
880240 Aeroplanes and other aircraft, of an unladen weight exceeding 15,000 kg
880260 Spacecraft (including satellites) and suborbital and spacecraft launch vehicles

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