EDC signs USD 600 million of new business in India to help grow Canadian supply into major multinationals
OTTAWA, April 4, 2013 /CNW/ - Export Development Canada (EDC) reported out today on USD 600 million in new transactions that will facilitate new export business between Canadian companies and Indian multinationals.
A number of EDC executives were in India in mid-March as growing opportunities for Canadian exporters and investors in the market has increased demand for the export credit agency's financing solutions. EDC views the Indian market as a corporate priority, and its Indian infrastructure strategy is designed to help Canadian companies gain access to some of the $1 trillion in planned infrastructure spending there over the next 5 years.
"All of EDC's work in India is geared towards one objective, to facilitate access for Canadian exporters and investors to opportunities created not only by India's infrastructure development plans, but by all of the secondary subsectors that feed into it as well," said Todd Winterhalt, Vice-President, International Business Development Group, EDC.
"EDC is in India to help open doors for Canadian companies, that's our job, and one of the important ways that we accomplish that is by providing financing to Indian companies. The financing capacity affords EDC privileged access to senior executives in India, which we can leverage to help raise awareness of Canadian suppliers that could enhance their supply chains and help them grow. The two new transactions that we finalized during our trip are perfect examples of this approach."
During the trip, EDC concluded a USD 100 M financing agreement with Tata Steel Ltd (TSL). The transaction marks the second loan that EDC has provided to Tata Steel, following a USD 100 million loan in 2012, and reflects the increasing Canadian supply into Tata Steel's supply chain, as well as their operations in Canada.
EDC also signed a protocol agreement with Aditya Birla Group (ABG), under which EDC will make available up to USD 500 million in financing for the Indian multinational. EDC will consider and underwrite loans under the protocol as opportunities arise out of ABG's Canadian operations or international operations.
EDC has permanent representations in Mumbai and New Delhi, and in 2012, more than 306 Canadian companies undertook more than CAD 2 billion in business with India that was facilitated by EDC. Of note last year, EDC provided USD 100 million in project financing to Hindalco, USD 50 million as part of a larger syndication to Reliance Industries, and USD 20 million to facilitate Rolls Royce Canada's sub-supply to Gail Limited in India.
Two-way trade between Canadian and India reached CAD 5.1 billion in 2012, with pulses, non metallic mineral, aerospace, jewelry and pharma as the leading sectors of trade.
EDC's executives were in India between March 17th and March 21st to meet with new and existing customers, in addition to business development activities with other Indian companies that have the potential to grow their Canadian supply chain.
Present during the ABG signing were said Pierre Gignac (Senior Vice-President, Enterprise Risk Management and Chief Risk Officer, EDC), Todd Winterhalt (Vice-President, International Business Development Group, EDC), Al Hamdani (Vice-President, Project Financing, EDC), Vijendra Gairola (Chief Representative, India, EDC ~ located in Mumbai), and Richard Bale (Consul General for Canada in Mumbai).
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 7,400 Canadian companies and their global customers in nearly 190 markets worldwide each year. EDC is financially self-sustaining and a recognized leader in financial reporting and economic analysis.
SOURCE Export Development Canada