Montreal-based CAE – formerly Canadian Aviation Electronics – scored a major boost from the federal and provincial governments with announcements it will receive nearly $200 million in largely-loaned funding over the next five years.

The aviation, defence and security, and healthcare company will receive a $140 million in “unconditionally repayable” funds on top of a $10 million no-strings-attached investment from the federal government. The Quebec government announced it will provide CAE with an interest-free loan of $42.5 and a non-repayable investment of $5 million.

Prime Minister Justin Trudeau and Quebec Premier Philippe Couillard joined CAE executives at the company’s headquarters Wednesday to announce the dual investments. The Prime Minister’s Office says the federal money will help to create 400 new engineering and manufacturing jobs over that time and allow for 1,700 employees to be retrained with “new digital skills.”

“With this investment, CAE will harness the power of artificial intelligence, cloud computing, big data, and augmented and virtual reality to develop the next generation of simulation and training products,” says a press release from PMO.

The funding will be delivered over five years. CAE said it will invest $1 billion on innovation over the same period to develop its Montreal headquarters, reduce aviation’s environmental footprint, address worldwide demand for aircrews, and push digital innovation over the period.

Follow @CharliePinkerto