EDC provides $500 million financing to Reliance Industries
02 April 2014
Export Development Canada (EDC), Canada's leading financier and insurer of Canadian exporting companies, today announced $500-million in financing for Reliance Industries Limited (RIL).
The transaction is among the largest financing packages that EDC has ever extended in Asia, Reliance Industries said in a release.
''We have been partnering with a wide section of Canadian suppliers for materials, equipment and services across our hydrocarbon businesses over the last 4-5 years and we are also engaging with them for our telecom business rollout,'' said Srikanth Venkatachari, Reliance's joint chief financial officer. ''We have more than a decade-long relationship with EDC, and this landmark deal will provide further impetus to foster trade between RIL and Canadian companies over the coming years.''
RIL said EDC provided the financing in response to its increasing business with Canadian companies since 2004, when EDC first became one of their financiers, adding that the new financing package helps diversify RIL's funding sources and extend the maturity profile of its long-term debt in a cost effective manner.
''RIL is a global leader in many sectors that match up well with Canadian industrial expertise, creating a natural partnership that benefits both of our priority interests,'' said Rajesh Sharma, EDC's senior vice president and global group head for business development.
''A strong relationship with EDC helps the RIL Group benefit from a global source of mature and dependable financing in a capital-constrained global economy,'' added Sharma. ''In turn, EDC introduces Canadian companies to RIL that not only meet their specific supply chain needs, but that can help them grow their global business. Everybody wins in this deal.''
Since 2010, RIL has been regularly doing business with approximately 50 Canadian companies. Of these companies, 33 per cent were small-to medium-sized companies.
EDC has been actively engaged with RIL for making introductions to Canadian capabilities.
India is a strategic market for Canada, as outlined in the government's Global Market Action Plan, and is also a market of corporate priority for EDC.
EDC is looking to expand the amount of financing that it offers to Indian companies for their capital expenditure, whether the financing be for general corporate purposes or project finance purposes.
Canadian and Indian companies used EDC's financial services to undertake CA$1.8 billion of business in 2013 alone.
EDC is Canada's export credit agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities.