SINGAPORE--(BUSINESS WIRE)--Export Development Canada (EDC), Canada’s dynamic export credit agency, today announced its new and first global branch outside of Canada, in Singapore.
EDC’s new branch will bring its global-scale financing business closer to projects and companies across Asia, ASEAN, and Oceania by negotiating and underwriting its financing from Singapore.
The new Singapore branch is expected to play an important role in doubling EDC’s loan bookings by 2021, when it hopes to be providing over USD 4 billion in new commercial financing annually. EDC’s focus will be developing financing relationships with corporations and project owners across the region that may already have Canadian suppliers, or where there is potential for future Canadian supply. EDC can also support Canadian foreign investment and foreign investment into Canada where there is a direct link to Canadian exports.
In addition, EDC will actively pursue opportunities to partner with commercial banks within club and syndicated financing facilities of select corporations across Asia and Oceania. The ASEAN market is of particular interest for EDC’s Singapore branch, with its fast growing economies and more than 625 million people.
“ASEAN is a dynamic region that is growing at a phenomenal rate, and growing ASEAN companies need capital to support their growth aspirations and trade focused business,” said Bill Brown, Regional Vice-President, Asia, EDC. “EDC offers Asian corporations a stable, global-scale financier with a long-term partnership horizon. Not only do we provide financing, but we can help your company reduce costs, be more productive, and more innovative by introducing Canadian technology and expertise.”
Mr. Brown is located in Singapore and will be responsible for all of EDC’s activities in the market. Singapore was chosen for EDC’s first global branch given its top ranking for ease of doing business, educated workforce and being Asia’s financial, commercial, and transportation center.
In the past five years, EDC helped facilitate nearly CAD 13 billion in business between companies based in ASEAN and Canada, through the entire range of its financial solutions.
Key sectors of interest for EDC in the ASEAN market are infrastructure (including energy and clean technology), extractives (mining, oil and gas), with additional interest in information and communications technology, light manufacturing, and transportation (automobile production, aerospace, and rail).
“Canada’s expertise in these sectors could spur greater trade between what ASEAN wants and what Canada is very good at providing,” said Mr. Brown. “The countries are a natural fit due to both having an abundance of natural resources spread out over a large geographical area.”
“EDC opening its first branch in Singapore will support Canada’s renewed push to increase bilateral trade and investment with ASEAN,” says Marie-Louise Hannan, Ambassador of Canada to ASEAN. “We see this new presence as a tremendous opportunity for Canadian and ASEAN companies to do more business together.”
“EDC’s decision to locate in Singapore also reflects the growing awareness by Canadian entities of the importance of this dynamic city-state as a regional hub,” added Lynn McDonald, High Commissioner of Canada to Singapore.
In 2016, EDC supported nearly 500 companies in the ASEAN region, who were key drivers of the CAD 21 billion in annual two-way trade between Canadian companies and ASEAN companies and consumers.
The infrastructure sector is a strong example of how EDC’s presence in the market can significantly benefit ASEAN companies. Over the last 5 years, EDC has provided more than USD 315 million to the region’s infrastructure sector, mainly through financing to ASEAN corporates.
“EDC having a presence in the market will make it easier for ASEAN companies to take advantage of Canada’s capabilities to offer cost effective, efficient, and sustainable ways of improving various infrastructure across the entire region,” added Mr. Brown.
EDC has been a global trade financier since 1944 and active in Asia and Oceania since its inception. EDC has permanent representations within Canadian foreign missions in Jakarta, Mumbai, Delhi, Beijing and Shanghai.
EDC also has permanent representations in Bogotá, Rio de Janeiro, São Paulo, Lima, Mexico City, Monterrey, Santiago, Moscow, Johannesburg, Dubai, Istanbul, London, and Düsseldorf.
EDC is Canada’s export credit agency, providing financial services for companies that buy from Canadian companies, or those that have Canadian supply and services in their corporate value chains. EDC’s financing can be used for capex and/or project finance requirements, either through bilateral or syndicated corporate facilities. Operating on commercial principles, EDC has a partnership-preferred philosophy to collaborate with private-sector financial institutions to share risk and create greater capacity for Canadian trade transactions. EDC is committed to Corporate Social Responsibility, and it takes into account the environmental and social impacts of its transactions.