Supporting Your Global Strategy

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Supporting Your Global Strategy
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Todays Agenda

• Provide an overview of EDC
• Our Mandate
• What we can and cant do
• Our footprint
• Outline how we support exporters
• Case example
• Open format
• Please ask questions as we go

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Corporate Mandate

• At EDC our mandate to support and develop,
  directly or indirectly, Canadas export trade and
  Canadian capacity, to engage in that trade, as
  well as to respond to international business
  opportunities, guides everything we do.

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Expanding Canadas Global Trade

• Highlights of 2007
• Served 6,963 customers 84 were SMEs
• Facilitated 78 billion in exports and
  investments in 183 markets - 21 billion in
  emerging markets
• 19 billion was in support of exports and
  investment by SMEs
• CVI score of 84.8 in 2007 in Ontario

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Our Footprint

• Canada 4 regional hubs plus HO in Ottawa
• Ontario Regional offices in TO, Mississauga,
  London and Ottawa
• International 13 locations and growing in
  strategic developing markets

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Case Study

• Mancini International

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Mancini International

• Electrical control equipment for water treatment
  industry w/world-class software to manage the
  system
• Sales 8 million / Equity 3.2 million / Op
  LOC 2 million OK for normal day-to-day ops
• Situation
• US2 million contract to supply a system to a
  buyer in Italy.
• Terms 85 net 60 shipment / 15 _at_ commissioning
  delivery of a 24-month warranty bond
• Buyer has requested 5-year financing
• Manufacturing costs 1.25 million
• Cash flow over 9-month manufacturing period -
  1.0 million

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Mancini International
Warranty Bond
Buyer Financing
time
Advance Payment Bond
WIP LOC
F/X Risk
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Mancini International 2010
Canadian Direct Investment Abroad
time
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Mancini International
time
Advance Payment Bond
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Mancini International
time
WIP LOC
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Mancini International
time
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Mancini International
time
F/X Risk
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Mancini International
Warranty Bond
time
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Mancini International
Buyer Financing
time
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Mancini International 2010
Canadian Direct Investment Abroad
time
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Our Services
Financing
Loan Guarantees
Insurance
Account Receivable Insurance covers receivables
up to 90 per cent of losses resulting from
commercial or political risks. Single Buyer
Insurance covers unlimited sales to one customer
for six months on contracts worth up to
USD250,000. EXPORTProtect covers single export
transactions for up to USD250,000. Contract
Frustration Insurance covers up to 90 per cent of
losses for one export contract. Documentary
Credit Insurance covers the bank for 90 per cent
of losses resulting from commercial or political
risks on documentary credits it confirms,
negotiates, accepts or pays. Political Risk
Insurance protects overseas assets, including
equipment and manufacturing facilities.
Performance Security Insurance covers up to 95
per cent of losses if the buyer demands payment
of a bond issued by the exporters bank without
valid reason.
EXPORTExpressCredit offers export credit loans to
companies with little access to the cash they
need. Security Compliance Loan is available for
up to 150,000 to finance the costs related to
becoming C-TPAT compliant Equity Investments
EDC engages in both direct and indirect equity
investments. Note Purchases involving simple
payment terms on export contracts with
high-quality foreign buyers. Canadian Direct
Investment Abroad a wide range of financing
structures is available to suit the needs of the
investment and to address the ongoing working
capital needs of foreign affiliates. Foreign
Buyer Financing solutions provide one to ten-year
coverage for up to 85 of the sale. Lines of
Credit to foreign companies who repeatedly buy
from Canadian companies and to foreign banks or
intermediaries that onlend money to foreign
buyers. Corporate Loan Syndications pull together
multiple banking partners to fund a borrowers
large, medium-term capital requirements. Leasing
- EDC does not act as a lessor but can provide
funding to lessors. Project Finance -
limited-recourse financing for large-scale
infrastructure and industrial projects.
Export Guarantee Program offers risk-sharing
guarantees to banks for up to 75 per cent of loan
related export contracts. MARG guarantees banks
that their customers will repay operating lines
that are increased by using the customers
foreign receivables as collateral. Bank Guarantee
Program provides cover to Canadian and
international banks financing the sale of
Canadian exports to customers in developing
markets.
Bonding
Performance Security Guarantee fully protects the
bank in the event of a call on a contractual
guarantee it issues on an exporters
behalf. Surety Bond Insurance fully protects a
surety company in the event of a call on a
contractual guarantee it issues on an exporters
behalf. Foreign Exchange Facility Guarantee
-gives the financial institution a guarantee in
lieu of collateral so the exporter can buy a
foreign exchange contract to protect against
currency fluctuations. Financial Security
Guarantee -replaces the collateral usually needed
to secure a variety of payment guarantees,
including operating lines of credit with foreign
banks, letters of guarantee for suppliers,
regulatory bodies, utilities, etc.
www.edc.ca