Transcript EDC Your Partner in Mexico

Export Development Canada
Presentation to Senate Committee
on Foreign Affairs
February 17th, 2004
Export Development Canada
EDC - Facilitating Canadian Trade
 EDC is Export Development Canada (Exportation
et développement Canada) Canada’s official
export credit agency.
 EDC helps Canadian firms complete international
sales, foreign buyers to purchase Canadian goods
and Canadian firms to invest with confidence
 Founded in 1944, EDC is a Crown corporation that
operates as a commercial financial institution.
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Export Development Canada
EDC’s Services
 Risk management services
• Export credits insurance
• Political risk insurance
• Performance security insurance and guarantees
 Financing Services
• Direct buyer loans
• Lines of credit
• Note purchase agreements
• Guarantees
• Leasing arrangements
• Structured finance solutions
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Export Development Canada
Example of Credit Insurance
Claim
EDC Credit
Insurance
EDC
Recourse
Canadian
Exporter
Claim Payment
90%
Buyer non-payment, insolvency,
Buyer contract cancellation,
or political risk event
Mexican
Buyer
CREDIT INSURANCE
Commercial and political risks covered
 Increases export opportunities
 Enhances competitiveness
 Increases working capital
 Access to EDC world-wide credit networks

Export Development Canada
Example of Financing
Loan Agreement
Mexican Buyer
goods &
services
EDC
Canadian
Exporter
Direct Disbursement
to Exporters
FINANCING
To offer buyers a complete sales package
 To meet foreign competition
 To provide a cash sale for Exporter and
Repayment terms for buyer

Export Development Canada
EDC Business Volume
Insurance
48
44
40
36
32
28
24
20
16
12
8
4
0
Financing
7.4 5.9
6
5
2
3
9
2
10
15
7
44.2
4
16
21
8
8
24
30
33
46
36
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
• Billions of Canadian Dollars
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Export Development Canada
EDC’s Sector Teams
EDC Regional Offices
In Canada:
- Vancouver
- Winnipeg
- Calgary
- Toronto
- London
- Montreal
- Quebec
- Halifax
- Moncton
- St. John’s
International
Representations:
Brazil
China
Small
Export sales < $1 million
Mexico
Large
Export sales > $1 million
Surface
Transportation
Poland
Agri-Food
Machinery ,
Equipment &
Advanced
Technologies
Forestry
Aerospace
Base & Semi
Consumer Goods
Emerging
Exporters Team
Mining,
Infrastructure
Development &
Services
Telecom
Energy
Financial
Institutions
Centres
of
Expertise
Economics
Legal
Project Finance
Technical
Int’l Markets
Equity
Export Development Canada
EDC and Mexico
 Mexico is a priority market for Canada and EDC.
 Recognizing the opportunities to build on its
business in Mexico, EDC established direct
representation in Mexico City in April of 2000, and
a second representation in Monterrey in October
of 2002.
 Mexico is the most important market in Latin
America for EDC. In 2003 alone, EDC support
totalled over $C 2.4 billion.
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Export Development Canada
EDC Business Volume in Mexico
3
2.5
2
1.5
1
0.5
0
1998
1999
2000
2001
2002
2003
Financing
Contract Insurance & Bonding
Political Risk Insurance
Short Term Insurance
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Export Development Canada
Mexico
EDC Business Volume by Sector
2003
Telecom
9.13%
Advanced Tech. &
Machinery and
Equip.
4.91%
Surface
Transportation
11.83%
Forestry
5.35%
Base and SemiAgri-Food Manufactured
Consumer Goods
4.31%
5.73%
2.49%
Other
0.92%
Energy
55.33%
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Export Development Canada
EDC Support for Canadian Exporters in Mexico
450
400
350
393
300
341
250
200
0
413
2002
2003
349
271
150
100
50
404
218
1997
1998
1999
2000
2001
In 2003 over 65% of our clients were small and medium sized Exporters.
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Export Development Canada
Mexico
Number of Exporters by Sector
2003
12 6
94
30
6
64
25
45
25
1
30
75
Agri-Food AF
Aerospace AS
Base and Semi-Manufactured BS
Consumer Goods CG
Emerging Exporters EE
Energy EN
Financial Institutions FI
Forestry FO
Surface Transportation SF
Advanced Tech. & Machinery and Equip. ATM
Mining&Infrastructure Dev.&Services MIDAS
Telecommunication TE
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Export Development Canada
Priority Sectors for EDC in Mexico
 Power
 Oil and Gas
 Industrial Equip.
 Automotive
 Telecom
 Agri-Food
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Export Development Canada
EDC's Relationships in Mexico
EDC’s success in Mexico is built on its extensive
relationships with key Mexican buyers, borrowers,
government agencies, financial institutions and
intermediaries.

Banks (private/public sector)

Industrial conglomerates

Private sector companies

Public sector agencies and departments

Trade Associations and other intermediaries
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Export Development Canada
EDC Credit Facilities in Mexico
 Scotiabank Inverlat
(through EDC-Scotiabank facility in Canada, US20 million)
 Banamex, US$100 million (MOU)
 BBVA Bancomer, US$75 million
 Bancomext, US$75 million (MOU)
 Banco Inbursa, US$50 million (MOU)
 NAFIN, US$30 million
 BANORTE, US$20 million (MOU)
 Banobras, US$20 million
 Pemex, US$50 million
US$200 million
US$200 million
 CFE, US$50 million
 Telmex, US$400 million
 América Móvil, US$250 million
(for subsidiaries in Latin America)
 Grupo IMSA, US$50 million
MOU : Memorandum of Understanding
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Export Development Canada
Other important EDC Relationships
CEMEX
MABE
NEMAK
TFM
FEMSA EMPAQUES
NAVISTAR
FEMSA COCA COLA
INNOPACK
GALVAK
METALSA
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Export Development Canada
EDC’s Structured Finance Solutions
Mexico is becoming one of the more active markets for
EDC in terms of structured finance transactions,
particularly in the power and telecom sectors.

Examples of recent signings in project finance.
Transalta Campeche S.A. de C.V.
Mexico
US$ 122,000,000
(EDC support included Political risk
insurance and Financing)
Gas fired power plant
Joint Lead Arranger
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Export Development Canada
EDC Market Representation in Mexico
 Presence established in Mexico City in April 2000 and
in Monterrey in October 2002 reflect importance of
Mexican market.
 EDC’s on the ground representation works in close
collaboration with Canadian Embassy in Mexico City
and Consulates in Guadalajara and Monterrey.
 Support to EDC and Canadian Exporters through :
Relationship building
Transaction support
Market intelligence
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Export Development Canada
EDC Market Representation in Mexico
Mexican buyers, borrowers, and project sponsors as well as
Canadian firms with an interest in EDC are invited to
contact:
Douglas Fortney
Regional Manager, EDC
(52-55) 5387-9316
Fax. (52-55) 5387-9317
[email protected]
Noé Elizondo
Regional Manager, EDC
(52-81) 8344-3200 ext. 3360
Fax: (52-81) 8340-7703
[email protected]
Miguel González
EDC Assistant
(52-55) 5387-9318
Fax. (52-55) 5387-9317
[email protected]
Canadian Consulate
Edificio Kalos 108-A
Zaragoza 1300 Sur
Monterrey, N.L. México 64000
The Canadian Embassy in Mexico
Schiller St., No. 529, Polanco,
11560 Mexico, D.F.
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