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Summit 05 Cd Prestn 10b Daignault Edc

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  • 1. 2005 Angel Summit October 2005
  • 2. EDC in numbers
    • Crown Corporation of the Federal Government
    • Supported $54.9 billion in exports and international investments in more than 170 markets around the world
    • Supported $11.6 billion in 146 developing markets including Brazil, Mexico, China, India and Russia
    • $20.7 billion total Assets
  • 3. Source: EDC Data 2004 Top Countries Volume ($M) USA $30,587 MEXICO $1,910 JAPAN $1,811 TAIWAN $1,484 CHINA $1,365 Top Countries Volume ($M) UK $1,235 BRAZIL $983 SOUTH KOREA $827 FRANCE $784 GERMANY $742
  • 4. OVERALL ASSESSMENT - BRIC Source: EDC Data 2003 Source: EDC Data 2003 Source: EDC Data 2004 Source: EDC Data 2004
  • 5. Canadian Benefits
    • Policy to ensure that transactions EDC facilitates generate benefits to Canada;
    • Direct benefits
      • normally quantifiable like Canadian content on goods and services as well as employment generation
    • Other economic benefits:
      • Research and Development spent in Canada
      • Canadian access to global markets
      • Future benefits
    • Public policy Benefits
      • Customer is a SME
      • Transaction is in developing markets
      • New product / new technology / new market
    EDC’s condition for action
  • 6. Market Engagement International Strategic International Business Development Group Export Ready Large Mid Market Small Domestic Exporters and Investors Specialized Sector Teams Small Business Group Offices Across Canada Grow the pool of exporters Need to understand and help companies overcome perceived barriers 35,000 Exporters and a pool of potential companies Banks Brokers Government Entities Associations Sponsors/Arrangers
  • 7. EDC and Small Businesses
  • 8. Short Term Insurance
    • Account Receivable Insurance
      • Protect against losses when your foreign buyer can’t or won’t pay
      • Enter new markets and expand existing ones
      • Offer your customers more flexible payment terms
      • Increase in operation line of credit with your financial institution
    Risk Management and Working Capital application
  • 9. Contract Insurance and Bonding
    • Performance Security Guarantee
      • Guarantee issued to the financial Institution
      • Exporter’s collateral replaced with EDC’s AAA credit
      • EDC’s risk is 0% weighted by most CFIs
      • Easier access to issuance of Bank instruments
      • Access to additional working capital
    Enables usage of trade instruments while managing risks and without restricting access to cash
  • 10. Contract Insurance and Bonding
    • Performance Security Insurance
      • Issued directly to the exporter
      • Covers 95% of losses if demand against a bank instrument is without reason
      • Provides additional protection if call due to reason outside seller’s control such as war or cancellation of import/export permits
  • 11. Exporter Guarantee Program
    • Pre Shipment Financing
      • Covers up to 75% of the Financial Institution loan to the exporter
      • Terms follow the delivery terms under the commercial contract
      • Can be used for indirect exports
    • Term Component possible
    Enables additional Financing through a Guarantee to your financial institution
  • 12. Financing
    • Direct Buyer Financing / Bank Guarantee Program
      • EDC provides a term loan to the foreign buyer in support of a specific contract
      • 15% down payment typically required
      • Loan can be up to 85% of the contract value
      • Generally no recourse to the exporter
      • Guarantee approach also available
    Financing solutions to the buyer of Canadian Goods and services
  • 13. Financing
    • Equity program
    • Emphasis is placed on investments that are characterized by:
        • strong export orientations
        • Expected to generate Canadian benefits of at least 2:1 over the projected life of the investment.
      • Total Direct Investment: $ 46.4 million
      • Cumulative exports to date: $ 1.1 billion
      • Fund Investments (Indirect): 5
      • Capital Advanced: $ 14 million
  • 14. Other Programs and Services
    • Political Risk Insurance
    • Project Finance
    • E Services
      • Export Check
      • Export Protect
  • 15. Information and Intelligence
    • Involvement on trade missions-reverse trade missions to drive procurement;
    • Work with trade commissioners for an integrated approach;
    • Sector and Geographic strategies
    www.edc.ca 1 800 850 9626