SUPPORTING INTERNATIONAL GROWTH. May 2017

Size: px

Start display at page:

Download "SUPPORTING INTERNATIONAL GROWTH. May 2017"

Clement Francis
5 years ago
Views:

1 SUPPORTING INTERNATIONAL GROWTH May 2017

2 OUTLINE About EDC US Experience and Strategy US Activity and Trends EDC Solutions Solution Scenarios Questions 2

3 ABOUT EDC Canada s Export Credit Agency Crown corporation wholly owned by Government of Canada Financially self-sustaining Operates on commercial principles Mandate: To support and develop Canada s export trade and international business efforts. 3

4 CONNECTING WITH CANADIAN BUSINESSES ACROSS CANADA

5 EDC S FOREIGN REPRESENTATION MOSCOW RUSSIA DÜSSELDORF GERMANY 17 OFFICES ACROSS CANADA LONDON UNITED KINGDOM ISTANBUL TURKEY BEIJING CHINA MONTERREY MEXICO North America $60.8B (58.3%) Asia-Pacific $16.5B (15.8%) Europe $13.9B (13.3%) South / Central America $7.7B (7.4%) Africa / Middle East $5.2B (5%) % = percentage of EDC s total business facilitated MEXICO CITY MEXICO BOGOTÁ COLOMBIA LIMA PERU SANTIAGO CHILE RIO DE JANEIRO BRAZIL SÃO PAULO BRAZIL DUBAI UAE JOHANNESBURG SOUTH AFRICA MUMBAI INDIA NEW DELHI INDIA SHANGHAI CHINA SINGAPORE JAKARTA INDONESIA

2015 PERFORMANCE HIGHLIGHTS Facilitated $104 billion in business carried out by Canadian companies Served more than 7,300 customers Supported

6 2015 PERFORMANCE HIGHLIGHTS Facilitated $104 billion in business carried out by Canadian companies Served more than 7,300 customers Supported business in 200 countries Facilitated $29.2 billion in emerging markets Our work contributed $66.8 billion to Canada s GDP, supporting 530,839 jobs 6

UNITED STATES BUSINESS VOLUMES Millions CAD 50000 45000 40000 35000 30000 25000

15% Business Volumes by Sector Extractive 22% Information and Communication

Infrastructure & Environment 27% EDC S FINANCIAL HIGHLIGHTS IN THE US (2016) $41.

7 UNITED STATES BUSINESS VOLUMES Millions CAD Business Volumes Insurance Financing Resources 16% Transportation 15% Business Volumes by Sector Extractive 22% Information and Communication Technologies 3% Light Manufacturing 17% Infrastructure & Environment 27% EDC S FINANCIAL HIGHLIGHTS IN THE US (2016) $41.2 BILLION IN TOTAL VOLUME $5.4 BILLION IN FINANCING 3,558 CUSTOMERS SERVED 2,596 SMEs SERVED

EDC AND THE UNITED STATES Canada and the

relationships in the world, 70% of Canadian

EDC Sectors of interest: Grow: Telecom, Retail

Processed Food, Forestry, Automotive Scope:

8 EDC AND THE UNITED STATES Canada and the United States have one of the largest trading relationships in the world, 70% of Canadian merchandise exports going to the United States EDC Sectors of interest: Grow: Telecom, Retail & Consumer Goods, Plastics & Packaging, Processed Food, Forestry, Automotive Scope: Mining, Rail, Infrastructure, Cleantech, Aerospace Maintain: O&G 8

9 SECTOR ACTIVITY AND GENERAL TRENDS Capacity ramped-up: On-shoring and general economic growth has helped grow manufacturing base, economic optimism and growth Automotive is hot: Vehicle sales at record levels, investments in autonomous driving and other technologies Consumer rebound: Consumers have shifted from saving to spending, opening up opportunities across retail sector O&G: Exploration and production companies focusing on efficiencies or existing wells Clean-Tech: like ICT, find Clean-Tech across various sectors 9

10 How we can Help you

12 Insurance Our solutions Accounts Receivable Insurance Contract Frustration Insurance Political Risk Insurance Why use credit insurance? Leverage insured AR for working capital Offer more competitive terms to buyers Mitigate risk of non-payment / market risk

Bonding ties up working capital and operating loans when cash flow is needed most

13 Bonding Our solutions Performance Security Guarantee Foreign Exchange Facility Guarantee Why use bonding guarantees? Bonding ties up working capital and operating loans when cash flow is needed most Many growing companies lack the asset base to secure LC/LG exposures that come along with international and domestic contracts

14 Financing Our solutions 1. Financing by way of bank guarantees Risk sharing approach Flexible structures Contract Equipment Acquisitions SR&ED Most value-added in event of foreign assets, foreign investments, and foreign affiliates.

15 Financing Cont d Our solutions 2. Direct Lending Generally senior secured; Aimed at supplementing bank s lending capacity; Priced to risk and market; Openness to various structures: Syndications Club deals Bilateral Project financing

16 EDC PRODUCTS TO HELP Challenge #1: We have a large export contract and need working capital to complete it. EDC can provide working capital by offering a partial guarantee to your bank Challenge #2: Our company sees an acquisition opportunity in the U.S. EDC can provide direct financing to help you expand Challenge #3: Our bank needs us to post collateral for a F/X facility in the U.S. EDC can provide our FXG to free up your working line Challenge #4: Uncertain about repayment plus margining issues as well EDC s accounts receivable insurance address both Challenge #5: I am a small company, need intros to key buyers EDC has large financing facilities in Auto, O&G, and ICT to drive influence 16

solutions in 2017 Nearly $300M disbursed to-date Criteria SMEs with strong, experienced management, documented survival

17 $750M support to the Oil & Gas sector What is it? $750M in support available to small and medium-sized Canadian companies in the O&G sector, to help them with financial solutions in 2017 Nearly $300M disbursed to-date Criteria SMEs with strong, experienced management, documented survival plan, evidence of bank support, & signed, draft or final export contract that requires WC Application Requirements Senior Management biographies, business plan, financial statements, capital structure

18 LET S TALK Southern Alberta Region Rob Luini, Account Manager rluini@edc.ca Anne-Marie Simoneau, Senior Account Manager asimoneau@edc.ca Joey St-Pierre, Senior Account Manager jst-pierre@edc.ca Colton Parsons, Account Manager cparsons@edc.ca

19 LET S TALK Northern Alberta Region Stacey Gordon, Senior Account Manager sgordon@edc.ca Anani Klutse, Account Manager aklutse@edc.ca Domenico Pecora, Account Manager dpecora@edc.ca

EDC support for Canadian Miners & Suppliers: 2017 Mining Supply Chain Forum

EDC support for Canadian Miners & Suppliers: 2017 Mining Supply Chain Forum APRIL 2017 Go, Grow and Succeed Internationally ABOUT EDC Canada s Export Credit Agency Crown corporation wholly owned by Government