Caisse de dépôt et placement du Québec completes first issue under commercial paper program’s multi-currency component

CDP Financial, a wholly-owned subsidiary of the Caisse de dépôt et placement du Québec (“Caisse”), is proceeding with the first issue under its commercial paper program’s multi-currency component – an investment in the amount of 210 million euros.

In March 2007, CDP Financial announced that the limits of its commercial paper program would be raised from CA$5 billion to CA$7 billion and a multi-currency component introduced. Overall, outstanding on short-term notes are restricted to a maximum of CA$7 billion or the equivalent (all currencies combined).

CDP Financial will utilize its high credit ratings to issue debt securities on the financial markets, in order to fund activities carried out by Caisse investment groups seeking to use financial leverage to boost returns on Canadian and international investments. Short-term notes issued in London, England can be denominated in sterling pounds, euros, Canadian or U.S. dollars, yen or Swiss francs, while those issued in Montréal, Canada will be made out in Canadian dollars.

“Through the issuance of this first commercial paper transaction in a currency other than the Canadian dollar, CDP Financial continues to fulfill its mission of providing support to the Caisse’s investment groups. These entities will therefore be able to borrow in the currency of their choice, in order to finance their investments,” stated Ghislain Parent, President, CDP Financial and Caisse Executive Vice-President, Finance, Treasury and Strategic Initiatives.

CDP Financial has been assigned the highest issuer credit ratings by Moody's Investors Service (Moody’s), Standard and Poor's (S&P) and Dominion Bond Rating Service (DBRS). For its short-term notes program, the company has received a rating of P-1 from Moody's, A-1 (high) from S&P and R 1 (high) from DBRS.

As at December 31, 2006, CDP Financial had issued short-term notes in the amount of CA$4.1 billion and medium-term notes worth CA$1.5 billion. CDP Financial’s financing programs are guaranteed by the Caisse.

The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2006, it held CA$143.5 billion in net assets. One of the leading institutional fund managers in Canada, the Caisse invests in the main financial markets as well as in private equity and real estate.