Transcript Export Development Canada Your Financial Partner

Export Development Canada
Your Financial Partner
March 2008
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EDC Facilitating Canadian Trade
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EDC (Export Development Canada) is Canada’s official export credit
agency (ECA). Its mandate is to support export and foreign
investment.
Founded in 1944, EDC is a Crown Corporation that operates as a
commercial financial institution
EDC is AAA rated by Moody’s and Standard & Poors and is
financially self-sustaining
Our services include:
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Financing
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Accounts Receivable Insurance
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Contract Insurance & Bonding
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Political Risk Insurance
Today, we are open for business in over 175 countries including 153
developing markets
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The Extractive Industries Team
 EDC has recently
restructured. Six new
industry sector teams were
introduced, including the
Extractive Industries Team
 Extractive Industries
includes:
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Mining
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Oil & Gas
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Pipeline
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Base Metal Production
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Fertilizers & Petrochemicals
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2007 Volume - Mining (CAD)
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Financing
$ 834 million
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Political Risk Insurance
$ 1.9 billion
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Accounts Receivable Insurance
$ 6.4 billion
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Contract Insurance & Bonding
$ 32 million
TOTAL
$ 9.16 billion
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EDC Financing Services
•EDC helps Canadian companies and
their Foreign buyers to arrange…
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Corporate Revolvers
Bilateral Facilities
Acquisition Facilities
Bridge or Term Loans
Syndicated Facilities
Highly Structured/Project Finance Facilities
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Project Finance Expertise
•EDC helps Canadian companies …
 Conduct
Financial Analysis
 Structure
deals
 Negotiate/Develop
 Assess
Technical Risks
 Underwrite
 Draft
Project Term Sheets
and Syndicate
and Negotiate Loan Documentation
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EDC Political Risk Insurance
• EDC helps Canadian companies invest
overseas…
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Assessing Political Risks
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Underwriting Equity Policies
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Underwriting Debt Policies
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Arranging Private Sector Insurance
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(Lloyds, Sovereign, Zurich, AIG)
Arranging Public Sector Insurance
(OPIC, ECGD, OND, EFIC, MIGA)
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EDC Contract Insurance & Bonding
•EDC helps Canadian exporters…
 Offer
competitive payment terms to their
foreign buyers
 Arrange
working capital and banking
facilities
 Arrange
bonds required by their foreign
buyers
 Manage
their foreign exchange risks
EDC Accounts Receivable
Insurance
•EDC helps Canadian exporters…
 Offer
competitive payment terms to their
foreign buyers
 Arrange
working capital and banking
facilities to support their foreign contracts
2008 Mining Pipeline for Africa
• EDC is currently considering in excess of $400
million of Project Finance and Political Risk
Insurance mining business in countries which
include:
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Democratic Republic of Congo
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Tanzania
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South Africa
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Eritrea
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Republic of Congo
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Algeria
Extractive Industries
2006 Mining Transactions
MAURITANIA
First Quantum Minerals
Limited
INDONESIA
PT Pamapersada
Nusantara
INDONESIA
PT Saptaindra Sejati
BRAZIL
CVRD International SA
Lender
Unsecured Corporate
Revolving Facility
Lender
Loan Facility
Arranger
Syndicated Facility
Senior Manager
Senior Transferable
Term Loan Facility
BRAZIL
Samarco Finance Ltd.
CANADA
Kinross Gold
Corporation
PERU
Cia. Minera Antamina
SA
ARGENTINA
Aluar Aluminio
Argentino S.A.I. y C.
C-Lead Arranger
Revolver and Term
Loan Facility
Arranger
Senior Revolving Credit
Facility
Lender
Senior First Loss
Facility
BRAZIL
Gerdau Acominas S.A.
USA
Thompson Creek
Metals Company
Mandated Lead
Arranger
Pre-Export Financing
Term Loan Facility
INDIA
Tata Steel Ltd.
Mandated Lead Arranger
Term Loan Facility
Lender
Senior Unsecured
Credit Facility
Lender
Senior Secured Credit
Facility
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Extractive Industries
2007 Mining Transactions
RUSSIA
SNC-Lavalin Engineer
& Constructors Inc.
MEXICO
Grupo IMSA, S.A. de
C.V.
Lender
Lender
BRAZIL
Kinross Gold
Corporation
ARGENTINA
Ternium S.A.
BRAZIL
Usiminas
INDONESIA
PT Pamapersada
Nusantara
MADAGASCAR
Ambatovy Nickel
CHILE
CODELCO
BRAZIL
CVRD
MEXICO
Silver Wheaton Corp.
Lender
USA
Steel Dynamics
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Oman – Sohar Aluminium
BUILDING ON EXPERIENCE
Transaction Overview:
• Development and construction of 350,000 tonne p.a. aluminium
smelter & associated power generation facilities
• Total project costs estimated at USD 2.4 billion
• Strong sponsorship from Alcan Inc., Oman Oil Company SAOC
and the Abu Dhabi Electricity Authority (ADWEA)
• The project supports the Sultanate of Oman’s strategy of
diversification of Oman’s economy away from primary
hydrocarbon extraction and sales
Project Challenges:
• The tight financial structure incorporated novel elements in line
with the aggressive bank market in the Middle East;
• Intercreditor arrangements with Islamic Lenders, particularly with
regard to security provisions.
EDC’s Contribution:
• EDC was an initial Mandated Lead Arranger for the financing
alongside Citibank, ABN Amro and SMBC;
• EDC’s early-stage commitment and substantial take-and-hold
position significantly contributed to the successful syndication of
the project;
Sohar
EMEA Industrial - Oman
USD 1,500,000,000
Commercial & Islamic
Bank Financing
Mandated Lead Arranger
Project Finance International
And PF Magazine
Deal of the Year
2005
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Tanzania - Bulyanhulu
Transaction Overview:
• Largest gold mine in Tanzania;
• Project cost in excess of USD 400 million;
• Barrick’s first major foray into Africa.
Project Challenges:
• First major project financing in Tanzania;
• Bank requirement for full PRI in a challenging market;
• Underwriting a strong project in an unstable region.
Bulyanhulu Project
Financing
Political Risk Insurance
USD 234,000,000
Co-Lead Insurer
& Arranger
EDC’s Contribution:
• Provided significant PRI capacity to meet financing
requirements;
• Acted as co-lead arranger and insurer to access
multilateral and private sector support;
• Played lead role in underwriting, due diligence, and
policy negotiating and documentation.
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