Sales of the new capital shares of the Fédération des caisses Desjardins du Québec, issued last June, have reached $1 billion.
This issue of capital shares—which could easily reach $1.2 billion—was a first in the financial cooperative world due to its scale. It was also conducted in compliance with the new Basel III regulatory requirements on capital.
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The capital shares have a nominal value of $10 and the minimum subscription amount is $100. The interest rate will be determined annually and will not exceed either the average annual yield of five-year Government of Canada Bonds, or 4.25%, depending on which is highest.
Since 1989, Desjardins caisse members have acquired shares issued by the caisses and the Federation, totaling $3.3 billion, toward the capitalization of their financial institution.
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Banks prepared to meet Basel III requirements