EDC provides USD 300 M in financing to Mexico's CFE in support of Mexican-based Canadian companies
OTTAWA, Nov. 28, 2012 /CNW/ - Export Development Canada (EDC) today announced it has provided the equivalent of USD 300 million to Comisión Federal de Electricidad (CFE), Mexico's national electricity company, to help increase opportunities for Canadian companies operating in Mexico.
The financing will be provided in Mexican pesos, reflecting the local currency preference by CFE to help them better match their revenues and expenses.
"Increasing the presence and profile of Canadian companies that have invested in the Mexican market, particularly among large corporate players with significant supply chain needs, is what EDC's work with CFE is really about," said Rajesh Sharma, Senior Vice-President, Business Development, EDC.
"By providing local-currency financing, EDC is able to open doors for Canadian companies by being a valued lender for large corporations with significant, and international, supply chains. It's about creating trade opportunities, rather than just responding to them."
Calgary's TransCanada is among the significant Canadian investors in Mexico and has multiple long-term service contracts with CFE.
"This is EDC's second loan with CFE in the past two years, positioning EDC as a key relationship bank for this important player in a key export sector and market for Canadian expertise," said Sharma. "Having a permanent presence in their market allows us to get to know our customers on a deeper level, better understanding and anticipating their needs, and CFE is a great example of this approach."
Last year, EDC helped 722 Canadian companies undertake nearly CAD 2.5 billion in business in Mexico, primarily in the light manufacturing, transportation and infrastructure/environment sectors.
EDC recently celebrated the 10-year anniversary of its permanent representation in Mexico. Since its opening, Canadian companies have used EDC's market representatives to complete more than CAD 20 billion in business in this market.
Between 2007 and 2011, EDC has worked with over 880 Canadian companies in the energy sector, in over 120 markets, helping them win and deliver upon CAD 67.8 billion in export trade.
In 2011, more than 600 Albertan companies used EDC's products and/or services in their efforts to grow their international business across 100 markets, to a value of CAD 11.9 billion.
EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by more than 7,700 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and a recognized leader in financial reporting and economic analysis.
SOURCE Export Development Canada