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
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
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 17(th) and March 21(st )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.
Media contactin Canada
Phil Taylor Export Development Canada Tel: (613) 598-2904
SOURCE: Export Development Canada
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CO: Government of Canada
-0- Apr/04/2013 14:34 GMT
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