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CARICOM-Canada Trade Development Forum - EDC and its relationship with CARICOM [EDC, Canada]

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  • 2010Digicel: USD$113 mJPSco: USD$20 m2009Nassau Airport Development Company: USD$35 m2008:Columbus Communications Trinidad Limited 5-15M

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  • 1. EDC and its relationship withCARICOMCARICOM Trade Development ForumNovember 2-3 2011
  • 2. Outline  Who we are  Business in the Region  EDC Solutions  CARICOM Country Overviews2
  • 3. About EDC  Canada’s Export Credit Agency  Crown corporation wholly owned by Government of Canada  Financially self-sustaining  Operates on commercial principles  Facilitated $84.6 billion in business volume  Carried out $24.7 billion in emerging markets  Served 8,236 customers3
  • 4. Supporting Business Worldwide EDC’s foreign representation North America / Caribbean $47.5B (56%) Asia-Pacific $15.2B (18%) Europe $10.7B (13%) South / Central America $5.5B (7%) Africa / Middle East $5.4B (6%) % = percentage of EDC’s total business volume Moscow, Russia Düsseldorf, Germany Beijing, People’s Republic of China Istanbul, Turkey Shanghai, People’s Republic of China Monterrey, MexicoMexico City, Mexico New Delhi, India Panama Singapore Mumbai, India Lima, Peru Abu Dhabi, UAE Rio de Janeiro, Brazil São Paulo, Brazil Santiago, Chile Location of EDC Representation4
  • 5. EDC Business Volume in Central America and Caribbean Business Volume by Product Business Volume by Sector Transportation 3000 2% Extractive Resources 24% 33% 2500Millions CAD 2000 1500 Light Manufacturing 1000 2% 500 0 Information & Infrastructure & Communicatio 2006 Environment n Technology 2007 2008 30% 9% 2009 2010 Insurance Financing Canadian Customers Served 700 FINANCIAL HIGHLIGHTS 581 600 559 557 $2.67 BILLION IN TOTAL VOLUME 500 487 452 $558 MILLION IN FINANCING 400 2006 2007 2008 2009 2010 557 CUSTOMERS SERVED
  • 6. Top CARICOM Markets 2010 Business VolumeCountry Description FINANCING INSURANCE Grand Total Customers Served Bahamas -- 54,232,844.80 54,232,844.80 46 Barbados -- 15,686,501.22 15,686,501.22 58 Jamaica 118,852,557.04 151,736,449.62 270,589,006.66 66 Trinidad & Tobago -- 94,730,642.65 94,730,642.65 106 Total CARICOM 118,852,557.04 341,163,970.92 460,016,527.96 221 6
  • 7. Top Canadian Exports to BahamasIndustry 2006 2007 2008 2009 2010Petroleum Refineries 5,587 51,104,650 193,453,955 106,975,223 121,173,499Frozen Food Manufacturing 2,795,044 3,870,317 3,864,840 4,673,017 4,441,500Flour Milling and Malt Manufacturing 2,636,033 2,782,831 2,563,491 2,975,304 2,835,829Animal Slaughtering and Processing 1,369,855 1,949,668 2,324,416 2,179,872 2,159,961Wood Kitchen Cabinet and Counter Top 1,034,172 458,279 446,844 862,372 1,480,092ManufacturingTOTAL (All Industries) 51,274,779 91,212,774 226,435,848 146,232,146 150,620,044 Source: Trade Data Online (Industry Canada) 7
  • 8. Top Canadian Exports to BarbadosIndustry 2006 2007 2008 2009 2010Animal Slaughtering and Processing 6,001,599 6,427,422 5,788,650 6,061,880 6,482,769Seafood Product Preparation and 3,222,216 3,002,904 3,417,655 3,186,583 2,889,302PackagingPaper Mills 5,401,777 2,587,228 3,934,408 4,287,382 2,397,401Other Plastic Product Manufacturing 1,812,267 2,312,018 1,515,164 1,802,833 1,537,407Ice Cream and Frozen Dessert 88,052 88,678 32,124 583,592 1,409,663ManufacturingTOTAL (All Industries) 59,410,656 55,221,887 45,452,027 55,453,295 36,675,145 Source: Trade Data Online (Industry Canada) 8
  • 9. Top Canadian Exports to JamaicaIndustry 2006 2007 2008 2009 2010Wheat Farming 27,885,931 61,271,552 78,413,390 20,938,203 44,306,174Seafood Product Preparation and 17,511,731 22,912,031 19,553,532 17,024,236 14,870,506PackagingAnimal Slaughtering and Processing 10,451,811 10,892,056 7,673,604 8,946,317 10,102,995Pharmaceutical and Medicine 8,098,017 8,807,953 10,400,922 9,483,654 6,736,093ManufacturingElectrical Equipment Manufacturing 2,549,821 6,540,844 6,599,073 5,676,979 5,435,250TOTAL (All Industries) 146,080,833 190,216,492 188,019,810 118,407,289 125,076,072 Source: Trade Data Online (Industry Canada) 9
  • 10. Top Canadian Exports to Trinidad & TobagoIndustry 2006 2007 2008 2009 2010Iron Ore Mining 8,764,060 39,657,424 95,403,087 115,185,935 176,932,747Paper Mills 28,781,385 22,696,143 18,214,707 17,117,097 17,209,462Seafood Product Preparation and Packaging 9,370,269 9,348,781 8,919,934 11,644,154 10,088,840Animal Slaughtering and Processing 6,759,602 7,245,651 6,914,421 7,960,299 9,460,511Dry Pea and Bean Farming 3,993,971 4,958,352 7,103,040 5,495,551 6,046,562TOTAL (All Industries) 178,796,720 210,183,773 262,672,894 251,184,790 289,026,699 Source: Trade Data Online (Industry Canada) 10
  • 11. EDC Priority Sectors in CARICOM  Infrastructure & Environment (hospitals, airports, ports, clean technologies)  Resources (fertilizer, paper, wood)  Information and Communication Technologies (equipment, software)  Extractive (oil and gas, mining)  Light Manufacturing (food products, medical technologies)11
  • 12. Financing Transactions USD USD USD USD 5-15 million 100-250 million 15-25 million 25-50 million Trinidad and Jamaica Jamaica Bahamas Tobago 2010 2010 2009 2008 USD USD < 1 million USD < 1 million Trinidad and 1-5 million Trinidad and Tobago Barbados Tobago 2009 2008 200612 https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx
  • 13. Overview of EDC Solutions
  • 14. Accounts Receivable Insurance for Canadian Exporters and Investors  Protect against foreign buyer’s failure to pay  Enter and expand into new markets  Offer more flexible payment terms  Increase access to working capital14 www.edc.ca/insurance
  • 15. Financing for Canadian Companies or Foreign Buyers of Canadian Goods and Services  Direct financing to foreign customer  Loan or guarantee to another financial institution  Lines of credit  Flexible financing options for foreign buyers  EDC assumes risk of non-payment15 www.edc.ca/financing
  • 16. Financing for Canadian Companies or Foreign Buyers of Canadian Goods and Services  Structures  Corporate Financing  Project Financing*  Leasing (loan to lessor of asset e.g. plane)*  EDC mandate  Direct export by Canadian company  Canadian direct investment abroad*  Pull transaction*  Protocol * Solely under commercial terms16
  • 17. Lines of Credit (Buyer Credits)  Current lines of credit provide access to financing in 26 countries  EDC pre-negotiates terms with foreign bank  Funds are disbursed to exporter  Fast turnaround provided on transactions17
  • 18. Export Guarantee Program  EDC provides your bank with loan guarantees to finance your export contracts  Get capital you need from your bank  Free up your line of credit  Meet up-front costs of export contracts18 www.edc.ca/financing
  • 19. Bonding Services  EDC provides a guarantee to your bank so it can issue guarantees to your customers and suppliers  EDC shares the risk with your surety company  Protect yourself from wrongful calls  Get bonds without tying up cash19 www.edc.ca/bonding
  • 20. Political Risk Insurance  Coverage for various political risks  Protects your assets, investments from certain political events  Increases access to cash from financial institution  Helps attract additional project capital20 www.edc.ca/pri
  • 21. Sovereign Non-Payment Coverage Characteristics  Comprehensive insurance covering default of scheduled loan payments (e.g. a sovereign’s inability & unwillingness).  Obligors include acceptable Borrowers and Guarantors:  Sovereign (Ministry of Finance)  Sub-sovereign (state, provincial, municipal)  Quasi-sovereign entities (50% state owned, public purpose, etc.)  Coverage up to 95% of insured losses.  Coverage for both hard and local currency financing.21
  • 22. Why Partner with EDC? Solidify risk profiles Enhance competitiveness Benefit from support in higher risk markets Receive tailored coverage EDC’s focus is to promote Canadian trade and investment22
  • 23. CARICOM Country Overviews
  • 24. BAHAMASBASIC FACTSCapital: BUSINESS VOLUMES CUSTOMERS SERVEDNassau 160 Insurance Financing 50Currency: 140 46Bahamas dollar (B$)Population (2010e): 120 Millions CAD345,000Total Area: 10013,939 sq km 80 40Climate: 40Subtropical 60 37 36Language: 40 35English 20Type of Government:Representative democracy 0President:Hubert Ingraham 2006 2007 30Next Election: 2008 2009May 2012 2010 2006 2007 2008 2009 2010GDP (2010e at PPP):8.9 billionGDP per Capita (2010e at PPP):25,884CONTACTS EDC BUSINESS VOLUME BY MARKET SECTOR CAD MILLIONSStephanie Butt-Thibodeau 2006 2007 2008 2009 2010 TotalRegional VP- Mexico, Central Extractive 20 21 102 16 4 163America, and Caribbeansbutt-thibodeau@edc.ca Info & Comm Tech 3 2 1 1 1 8613.598.3849 Infra & Environment 31 16 31 56 45 179Alain GauthierChief Representative- Panama Light Manufacturing 4 1 0 1 1 7agauthier@edc.ca Resources 20 22 12 3 2 59613.598.2759 Transportation 1 0 1 1 1 4Teri NizzolaRegional Manager- Central TOTAL 79 62 147 78 54 420America, and Caribbeantnizzola@edc.ca -- Business volume less than $0.5m613.598.3194 24
  • 25. BARBADOSBASIC FACTSCapital: BUSINESS VOLUMES CUSTOMERS SERVED Insurance Financing 60 58Bridgetown 100Currency:Barbados dollar (Bd$) 80Population (2008e): Millions CAD276,000 49 60 50Total Area:431 sq kmClimate: 40Subtropical 41Language: 40English 20GDP (2010e at current US$): 343.2 billion 0 32GDP per Capita (2009 current US$):13,500 2006 2007 30 2008 2009 2010 2006 2007 2008 2009 2010CONTACTSStephanie Butt-ThibodeauRegional VP- Mexico, CentralAmerica, and Caribbeansbutt-thibodeau@edc.ca EDC BUSINESS VOLUME BY MARKET SECTOR CAD MILLIONS613.598.3849 2006 2007 2008 2009 2010 TotalAlain Gauthier Extractive 18 1 1 1 1 22Chief Representative- Panamaagauthier@edc.ca Info & Comm Tech -- 1 1 1 3 6613.598.2759 Infra & Environment 1 -- 15 2 2 20Teri NizzolaRegional Manager- Central Light Manufacturing 3 3 3 3 3 15America, and Caribbean Resources 6 26 6 8 7 53tnizzola@edc.ca613.598.3194 Transportation 57 -- -- -- -- 57 TOTAL 85 31 26 15 16 173 -- Business volume less than $0.5m 25
  • 26. JAMAICABASIC FACTSCapital: BUSINESS VOLUMES CUSTOMERS SERVEDKingston 350 Insurance Financing 85Currency: 79Jamaican Dollar (J$) 300Population (2006e): 250 Millions CAD2.67 million 75Total Area: 72 20010,991 sq kmClimate: 150 67Tropical all year 66Language: 100 65English 50Type of Government: 59Representative democracy 0GDP (2010e at PPP): 23.8 billion 2006 2007 55GDP per Capita (2010e at PPP): 2008 20098,745 2010 2006 2007 2008 2009 2010CONTACTSStephanie Butt-ThibodeauRegional VP- Mexico, CentralAmerica, and Caribbean EDC BUSINESS VOLUME BY MARKET SECTOR CAD MILLIONSsbutt-thibodeau@edc.ca613.598.3849 2006 2007 2008 2009 2010 Total Extractive -- -- 2 -- -- 2Alain GauthierChief Representative- Panama Info & Comm Tech 63 162 40 8 131 404agauthier@edc.ca613.598.2759 Infra & Environment 4 84 86 99 95 368Teri Nizzola Light Manufacturing 6 6 7 7 5 31Regional Manager- Central Resources 16 21 50 28 25 140America, and Caribbeantnizzola@edc.ca Transportation 17 17 15 18 15 82613.598.3194 TOTAL 106 290 200 160 271 1,027 -- Business volume less than $0.5m 26
  • 27. TRINIDAD & TOBAGOBASIC FACTSCapital: BUSINESS VOLUMES CUSTOMERS SERVEDPort of Spain 250 140Currency: Insurance FinancingTrinidad and Tobago dollar (TT$) 200 130 125 Millions CADPopulation (2010e):1.22 million 150 118Total Area: 1205,128 sq kmClimate: 100 110 107SubtropicalLanguage: 50 100English 98Type of Government: 0 100Parliamentary democracyPresident: 2006 2007 90George Maxwell Richards 2008 2009Nominal GDP (2009): 2010 2006 2007 2008 2009 2010$21 billion USDCONTACTSStephanie Butt-ThibodeauRegional VP- Mexico, Central EDC BUSINESS VOLUME BY MARKET SECTOR CAD MILLIONSAmerica, and Caribbeansbutt-thibodeau@edc.ca 2006 2007 2008 2009 2010 Total613.598.3849 Extractive 101 34 34 34 34 237Alain GauthierChief Representative- Panama Info & Comm Tech 87 10 7 12 21 137agauthier@edc.ca613.598.2759 Infra & Environment 9 1 3 17 2 31 Light Manufacturing 2 5 4 4 4 19Jean-Sebastien CharronSenior Associate- Central America, and Resources 29 28 37 44 33 170Caribbeanjcharron@edc.ca Transportation 1 1 2 1 0 5613.598.2993 TOTAL 229 79 87 112 94 601 -- Business volume less than $0.5m 27
  • 28. Central America and Caribbean Contacts Ottawa  PanamaStephanie Butt-Thibodeau Alain GauthierRegional VP- Mexico, Central America, and Caribbean Chief Representative- Central America and Caribbeansbutt-thibodeau@edc.ca agauthier@edc.ca613.598.3849 613.598.2759Teri Nizzola Angela VillalazRegional Manager- Central America and Caribbean Coordinator (DFAIT-LES)tnizzola@edc.ca avillalaz@edc.ca613.598.3194 507.294.2527Jean-Sebastien CharronSr. Associate- Central America and Caribbeanjcharron@edc.ca613.598.2993Berinder NehilAssociate- Mexico, Central America and Caribbeanbnehil@edc.ca613.598.6880 28
  • 29. Direct Buyer Loans (Buyer Credits) Exporter Disbursement Contract Documents Financing Agreement Foreign Scheduled Repayment Deemed Buyer/Borrower of Principal and Interest Drawdown EDC29
  • 30. Lines of Credit (Buyer Credits) Exporter Commercial Contract Line of Credit Domestic Financing Agreement EDC Foreign Financial Buyer Institution/Borrower30
  • 31. Political Risk Insurance (PRI) for Non-Honouring of Sovereign Obligation Canadian Company Goods, Services Sovereign Entity or Investment Local Companies (ie. MOF) Financial Guarantee Goods, Services or Investment Foreign Buyer or Project Loan EDC Non Honouring of Sovereign Obligation (NHS) Policy EDC Financial Institution31