Presentation on theme: "Export Development Canada Presentation to Senate Committee on Foreign Affairs February 17 th, 2004."— Presentation transcript:
Export Development Canada Presentation to Senate Committee on Foreign Affairs February 17 th, 2004
Export Development Canada 2 EDC is Export Development Canada (Exportation et développement Canada) Canadas official export credit agency. EDC helps Canadian firms complete international sales, foreign buyers to purchase Canadian goods and Canadian firms to invest with confidence Founded in 1944, EDC is a Crown corporation that operates as a commercial financial institution. EDC - Facilitating Canadian Trade
Export Development Canada 3 EDCs Services Risk management services Export credits insurance Political risk insurance Performance security insurance and guarantees Financing Services Direct buyer loans Lines of credit Note purchase agreements Guarantees Leasing arrangements Structured finance solutions
Export Development Canada EDC Credit Insurance Claim Payment 90% Canadian Exporter Mexican Buyer Claim EDC Recourse l Commercial and political risks covered l Increases export opportunities l Enhances competitiveness l Increases working capital l Access to EDC world-wide credit networks CREDIT INSURANCE Example of Credit Insurance Buyer non-payment, insolvency, Buyer contract cancellation, or political risk event
Export Development Canada Example of Financing Mexican Buyer Canadian Exporter EDC Loan Agreement goods & services Direct Disbursement to ExportersFINANCING l To offer buyers a complete sales package l To meet foreign competition l To provide a cash sale for Exporter and Repayment terms for buyer Repayment terms for buyer
Export Development Canada 6 Billions of Canadian Dollars EDC Business Volume
Export Development Canada EDC Regional Offices In Canada: - Vancouver - Winnipeg - Calgary - Toronto - London - Montreal - Quebec - Halifax - Moncton - St. Johns International Representations: Brazil China Mexico Poland Centres of Expertise Economics Legal Project Finance Technical Intl Markets Equity EDCs Sector Teams Machinery, Equipment & Advanced Technologies Aerospace Surface Transportation Energy Mining, Infrastructure Development & Services Forestry Agri-Food Consumer Goods Base & Semi Large Export sales > $1 million Small Export sales < $1 million Emerging Exporters Team Financial Institutions Telecom
Export Development Canada 8 EDC and Mexico Mexico is a priority market for Canada and EDC. Recognizing the opportunities to build on its business in Mexico, EDC established direct representation in Mexico City in April of 2000, and a second representation in Monterrey in October of Mexico is the most important market in Latin America for EDC. In 2003 alone, EDC support totalled over $C 2.4 billion.
Export Development Canada 9 EDC Business Volume in Mexico
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Export Development Canada 11 EDC Support for Canadian Exporters in Mexico # of firms supported In 2003 over 65% of our clients were small and medium sized Exporters.
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Export Development Canada 13 Priority Sectors for EDC in Mexico Power Oil and Gas Industrial Equip. Automotive Telecom Agri-Food
Export Development Canada 14 EDC's Relationships in Mexico EDCs success in Mexico is built on its extensive relationships with key Mexican buyers, borrowers, government agencies, financial institutions and intermediaries. l Banks (private/public sector) l Industrial conglomerates l Private sector companies l Public sector agencies and departments l Trade Associations and other intermediaries
Export Development Canada 15 EDC Credit Facilities in Mexico vScotiabank Inverlat (through EDC-Scotiabank facility in Canada, US20 million) v Banamex, US$100 million (MOU) v BBVA Bancomer, US$75 million v Bancomext, US$75 million (MOU) v Banco Inbursa, US$50 million (MOU) v NAFIN, US$30 million vBANORTE, US$20 million (MOU) vBanobras, US$20 million vPemex, US$50 million US$200 million US$200 million vCFE, US$50 million vTelmex, US$400 million vAmérica Móvil, US$250 million (for subsidiaries in Latin America) vGrupo IMSA, US$50 million MOU : Memorandum of Understanding
Export Development Canada 16 Other important EDC Relationships CEMEXMABE NEMAKTFM FEMSA EMPAQUESNAVISTAR FEMSA COCA COLAINNOPACK GALVAKMETALSA
Export Development Canada 17 EDCs Structured Finance Solutions Transalta Campeche S.A. de C.V. Mexico US$ 122,000,000 (EDC support included Political risk insurance and Financing) Gas fired power plant Joint Lead Arranger Mexico is becoming one of the more active markets for EDC in terms of structured finance transactions, particularly in the power and telecom sectors. Examples of recent signings in project finance.
Export Development Canada 18 EDC Market Representation in Mexico Presence established in Mexico City in April 2000 and in Monterrey in October 2002 reflect importance of Mexican market. EDCs on the ground representation works in close collaboration with Canadian Embassy in Mexico City and Consulates in Guadalajara and Monterrey. Support to EDC and Canadian Exporters through : Relationship building Transaction support Market intelligence
Export Development Canada 19 EDC Market Representation in Mexico Mexican buyers, borrowers, and project sponsors as well as Canadian firms with an interest in EDC are invited to contact: Douglas Fortney Regional Manager, EDC (52-55) Fax. (52-55) Miguel González EDC Assistant (52-55) Fax. (52-55) The Canadian Embassy in Mexico Schiller St., No. 529, Polanco, Mexico, D.F. Noé Elizondo Regional Manager, EDC (52-81) ext Fax: (52-81) Canadian Consulate Edificio Kalos 108-A Zaragoza 1300 Sur Monterrey, N.L. México 64000