Export Development Canada An Overview

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1 Export Development Canada An Overview Ali Murtaza Regional Manager Middle East, North Africa and Eastern Mediterranean 09 June 2015

2 EDC Overview Canada s Export Credit Agency About EDC Crown corporation wholly owned by the Government of Canada Financially self-sustaining Rated AAA Operates on commercial principles Support and develop Canada s export trade and international business efforts Provide financing and insurance solutions as well as market intelligence to Canadian exporters and investors EDC s Role 2

Support and develop Canada s export trade and international business efforts Provide financing

3 2014 Performance Highlights Facilitated $98bn+ in business carried out by Canadian companies Including $28bn+ of lending facilitated in emerging markets Served more than 7,400 Canadian companies 90%+ of which were small-and-medium sized businesses Supported business in 198 markets 3

emerging markets Served more than 7,400 Canadian companies 90%+ of

4 EDC s Canadian Presence EDC has offices across Canada We do business where business is done 4

EDC s Foreign Representation North America / Caribbean $52.8B (55%) Asia-Pacific $18.6B (20%) Europe $12.8B (13%) South / Central America $5.6B (6%) Africa / Middle East $5.

5 EDC s Foreign Representation North America / Caribbean $52.8B (55%) Asia-Pacific $18.6B (20%) Europe $12.8B (13%) South / Central America $5.6B (6%) Africa / Middle East $5.9B (6%) % = percentage of EDC s total business volume in 2013 Moscow, Russia Mexico City, Mexico Monterrey, Mexico Düsseldorf, Germany Istanbul, Turkey Mumbai, India Beijing, People s Republic of China Shanghai, People s Republic of China New Delhi, India Bogota, Columbia Dubai, UAE Singapore Lima, Peru Rio de Janeiro, Brazil Santiago, Chile São Paulo, Brazil Location of EDC Representation 5

9B (6%) % = percentage of EDC s total business volume in 2013 Moscow, Russia Mexico City, Mexico Monterrey, Mexico Düsseldorf, Germany

6 EDC s Products and Services Financing Solutions Insurance Products Canadian Exporters in Canada Foreign Buyers of Canadian Goods and Service Canadian Companies Investing Abroad ( CDIA ) Foreign Companies Investing in Canada ( FDI-IN ) Accounts Receivable Insurance Documentary Letters of Credit Insurance Political Risk Insurance Non-Honoring Sovereign Insurance ( NHS ) Bonding (Bid, Advance, Performance & Warranty) Key Criteria for EDC Support: Canadian Benefits, Procurement from Canada, Corporate Social Responsibility, Credit Worthiness of Borrower/Risk Counterpart, Exporter Financial and Technical Capabilities 6

Political Risk Insurance Non-Honoring Sovereign Insurance ( NHS ) Bonding (Bid, Advance, Performance & Warranty) Key Criteria for EDC Support: Canadian

7 Financing Solutions Facilitate the procurement of Canadian goods and services by foreign buyers Structures Corporate Finance Project Finance Bank on-lending (through lines of credits with banks) What kinds of transactions can EDC support? Buyer financing; supporting direct export by a Canadian company; subject to OECD ECA guidelines Canadian direct investment abroad; subject to EDC guidelines Pull transactions; based on existing and future procurement from Canada Protocols with foreign multinationals; based on their operations in Canada and contribution to Canada s economy 7

Buyer financing; supporting direct export by a Canadian company; subject to OECD ECA guidelines Canadian direct investment abroad; subject to EDC

8 Extractive Industries Extractive Industries include: Oil & Gas (including Pipelines) Mining (including Base Metal production) Fertilizers and Petchem. EDC s Business Volume Oil & Gas Sector (in CAD billion) Product Financing Political Risk Insurance Accounts Receivable Insurance Contract Insurance and Bonding Total

EDC s Business Volume Oil & Gas Sector (in CAD billion) Product 2012 2013 2014 Financing 4.6 4.2 6.

9 Oil & Gas Value Chain 9

10 What is a Pull? A loan that EDC makes to a foreign buyer to provide it with funds that the buyer in turn commits to use to buy goods and services from Canadian suppliers With EDC s financing in place, these buyers then take a closer look at potential Canadian suppliers when buying goods and services internationally. This provides opportunities for many Canadian exporters to access these companies and their projects in a more efficient manner Stats on EDC Pulls Pull facilities with 60+ large companies globally 15+ countries with wide range of industries 35%+ companies are headquartered in emerging markets Approx. a third of these companies are in the Oil & Gas space, followed by transportation-related sectors, mining/metals and ICT 10

these buyers then take a closer look at potential Canadian suppliers when buying goods and services internationally.

11 EDC s Select Relationships in the Oil & Gas Space 11

12 EDC Contacts International Business Development Stephen Wilhelm Regional Vice President - EMEA swilhelm@edc.ca Ali Murtaza Regional Manager, MENA amurtaza@edc.ca Business Development Oil & Gas Sector Rob Hodges Sector Advisor, Oil & Gas rhodges@edc.ca Kathryn Lyons Associate klyons@edc.ca 12

ca Ali Murtaza Regional Manager, MENA amurtaza@edc.

Financing in China. Export Development Canada. November, 2012. Chris Evans, Ontario Region

Financing in China. Export Development Canada. November, 2012. Chris Evans, Ontario Region Financing in China Export Development Canada Chris Evans, Ontario Region November, 2012 About Export Development Canada (EDC) Canada s Export Credit Agency Crown corporation wholly owned by Government