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Current Trends in Mining Finance – April 29 and 30, 2013 ECA, Multi-Lateral, DFI Financing James Babbitt, Export Development Canada Benefits of Export Credit Agency, Multi-lateral Financing Capacity – Commercial banks may lack capacity particularly in developing markets Increasing capex for mining projects; significant development in emerging markets Longer tenor in certain situations “Political risk umbrella” – perceived benefit of having government/multi-lateral participation May provide commercial and/or political risk coverage which could mobilize additional bank capacity Certain Multi-Laterals may provide equity/early stage funding 2 Export Development Canada (“EDC”) Canada’s Export Credit Agency (“ECA”) Crown corporation wholly owned by Government of Canada Financially self-sustaining Operates on commercial principles Acts as a direct lender Certain ECAs may provide a guarantee to commercial financial institutions Adopted Equator Principles 2007 IFC Performance Standards 3 Criteria for EDC Support EDC’s mandate to support Canadian exports and foreign investments Export of goods and services – Contracts with Canadian suppliers – Canadian content in contracts with foreign suppliers Canadian foreign direct investment by Canadian company – – – – Not just a Canadian incorporated company Level of senior management within Canada Canadian involvement on Board of Directors Canadian operations Under certain circumstances can consider domestic financings 4 Other ECA/DFI Support Other ECAs Procurement of goods and services Certain ECAs may also support projects based on import of certain key commodities Multi-Lateral lending agencies Development mandate in emerging economies Often restricted geographically 5 EDC Tombstones: Multi-Sourced Financings Minera Esperanza Pueblo Viejo Kupol Gold Mine Ambatovy USD 1,050,000,000 USD 1,035,000,000 USD 200,000,000 USD 2,100,000,000 Project Debt Financing Project Financing Financing Project Financing Lender ECA Co-Lead Arranger Mandated Lead Arranger Lead Arranger PFI Americas Mining Deal of the Year 2009 6 PFI Americas Mining Deal of the Year 2010 Mining Deal of the Year 2007 Contact James Babbitt Sr. Project Finance Manager Mining, Metals & Resources Tel: (613) 597-8617 e-mail: [email protected] Export Development Canada 150 Slater Street Ottawa, ON Canada K1A 1K3 www.edc.ca