Presentation to Senate Committee on Foreign Affairs

1
Presentation to Senate Committee on Foreign
Affairs
February 17th, 2004
2
EDC - Facilitating Canadian Trade

• 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.

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

4
Example of Credit Insurance
Claim
Canadian Exporter
Claim Payment 90
Buyer non-payment, insolvency, Buyer contract
cancellation, or political risk event
EDC Recourse
Mexican Buyer
5
Example of Financing
Loan Agreement
Mexican Buyer
goods services
Direct Disbursement to Exporters
6
EDC Business Volume

• Billions of Canadian Dollars

7
EDCs Sector Teams
EDC Regional Offices In Canada - Vancouver -
Winnipeg - Calgary - Toronto - London -
Montreal - Quebec - Halifax - Moncton - St.
Johns International Representations Brazil Chin
a Mexico Poland
Small Export sales lt 1 million
Emerging Exporters Team
Centres of Expertise
Large Export sales gt 1 million
Mining, Infrastructure Development Services
Economics Legal Project Finance Technical Intl
Markets Equity
Surface Transportation
Telecom
Machinery , Equipment Advanced Technologies
Base Semi
Consumer Goods
Energy
Agri-Food
Financial Institutions
Forestry
Aerospace
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 2002.
• Mexico is the most important market in Latin
  America for EDC. In 2003 alone, EDC support
  totalled over C 2.4 billion.

9
EDC Business Volume in Mexico
10
(No Transcript)
11
EDC Support for Canadian Exporters in Mexico
of firms supported
In 2003 over 65 of our clients were small and
medium sized Exporters.
12
(No Transcript)
13
Priority Sectors for EDC in Mexico

• Power
• Oil and Gas
• Industrial Equip.
• Automotive
• Telecom
• Agri-Food

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.
• Banks (private/public sector)
• Industrial conglomerates
• Private sector companies
• Public sector agencies and departments
• Trade Associations and other intermediaries

15
EDC Credit Facilities in Mexico

• Banobras, US20 million
• Pemex, US50 million US200 million
  US200 million
• CFE, US50 million
• Telmex, US400 million
• América Móvil, US250 million
• (for subsidiaries in Latin America)
• Grupo IMSA, US50 million

• Scotiabank Inverlat
• (through EDC-Scotiabank facility in Canada, US20
  million)
• Banamex, US100 million (MOU)
• BBVA Bancomer, US75 million
• Bancomext, US75 million (MOU)
• Banco Inbursa, US50 million (MOU)
• NAFIN, US30 million
• BANORTE, US20 million (MOU)

MOU Memorandum of Understanding
16
Other important EDC Relationships

• CEMEX MABE
• NEMAK TFM
• FEMSA EMPAQUES NAVISTAR
• FEMSA COCA COLA INNOPACK
• GALVAK METALSA

17
EDCs Structured Finance Solutions

• 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.
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
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

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)
5387-9316 Fax. [phone]
mhough_at_edc.ca Miguel González EDC
Assistant (52-55) 5387-9318 Fax. (52-55)
5387-9317 mgonzalez_at_edc.ca The Canadian Embassy
in Mexico Schiller St., No. 529, Polanco, 11560
Mexico, D.F.
Noé Elizondo Regional Manager, EDC (52-81)
8344-3200 ext. 3360 Fax (52-81)
8340-7703 nelizondo_at_edc.ca Canadian
Consulate Edificio Kalos 108-A Zaragoza 1300
Sur Monterrey, N.L. México 64000