EDC provides USD 250 M in financing to China Gas Holdings to help grow their Canadian supply
OTTAWA, Aug. 29, 2013 /CNW/ - Export Development Canada (EDC) today signed a USD 250 million financing agreement with Hong Kong-based China Gas Holdings (CGH), one of mainland China's largest natural gas suppliers.
The financing agreement will facilitate CGH's planned procurement from its long-standing Canadian supplier, B.C.- based IMW, a wholly-owned subsidiary of Clean Energy Fuels Corporation.
EDC's Senior Vice-President and Global Head of Financing and Investments, Benoit Daignault and Mr. Liu Ming Hui, Executive Chairman, Managing Director and President of China Gas, took part in the signing ceremony held at EDC's Ottawa headquarters.
Mr. Hui said that "We have enjoyed a beneficial collaboration with EDC since 2009 and we are delighted to receive their support again. Apart from our strong business performance, our good corporate governance and environmental protection efforts have favorably impressed EDC. This loan facility provides China Gas with more financial flexibility to further expand our city gas project portfolio, as well as to forge ahead with our compressed natural gas refueling station expansion strategies as one of the Group's new growth drivers. We will continue to explore new opportunities in order to drive the development of clean energy in China."
China's 12th 5-year plan outlined a number of initiatives to reduce their dependency on coal and oil, leading to burgeoning Chinese demand for Canadian companies with cleaner technology expertise like IMW.
Intensifying urbanization in China is placing significant stress upon its infrastructure overall, creating massive opportunities for Canadian companies that can help them find ways to not only meet, but get ahead of that demand curve.
The financing will also serve as a mechanism to introduce new Canadian supply into CGH's operations overall. Forward-looking companies like CGH want to structurally embed more cost-efficient, cleaner technologies into their operations, which can be very capital intensive. EDC's financing capacity is well-placed in the market and can help put Canadian companies at the top of the potential supplier list.
EDC provided CGH with USD 30 M in financing in 2009 to facilitate the purchase of supply from IMW. As EDC and CGH grew their relationship over the past 4 years, a number of Canadian companies were introduced to them. The potential for Canadian supply into their operations is the basis for the new, larger financing package.
EDC has established permanent representations in Beijing and Shanghai and has been active in China since 1979, making it one of the first export credit agencies to establish business ties to the market.
In 2012, EDC supported 586 companies and facilitated over CAD 7.6 billion of business in China, a key market of focus for the corporation.
China is also a strategic priority for the Government of Canada. Two-way trade between Canada and China surpassed CAD 70 billion in 2012, up from CAD 53 billion in 2008. The primary sectors of trade between Canada and China are electronics, pulp and paper, textiles and minerals.
About China Gas Holdings
China Gas Holdings Limited is a natural gas services operator listed on the main board of The Hong Kong Stock Exchange Limited. It engages principally in the investment, operation and management of city gas pipeline infrastructure, distribution of natural gas and LPG to residential, commercial and industrial users, construction and operation of oil stations and gas stations, and development and application of natural gas and LPG related technologies in China.
Since 1984, IMW has been a leading supplier of Compressed Natural Gas (CNG) equipment for vehicle fuelling and industrial applications such as bus / taxi ﬂeets and gas-fired power generation plants. CNG fuelling systems and products are the cornerstone of IMW's clean-technology manufacturing operations. IMW was purchased by Clean Energy Fuels Corp. (Nasdaq: CLNE) in 2010 and operates as a wholly-owned subsidiary
EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by more than 7,400 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and a recognized leader in financial reporting and economic analysis.
SOURCE Export Development CanadaFor further information:
E-mail (preferred): firstname.lastname@example.org