OTTAWA, April 4, 2018 /CNW/ - In 2017 Export Development Canada (EDC) delivered record levels of support for Canadian companies doing international business. Canada's export credit agency supported more than CAD 100 billion in exports, foreign investment and trade development activities, while serving 9,398 companies - the largest number of companies served in EDC's 73-year history.
"Two years ago we adopted a new and ambitious strategy for increasing our relevance among Canada's exporters and we're seeing results," said EDC President and CEO, Benoit Daignault.
What makes the record results more impressive is that they happened in the same year that EDC did major retooling of its operations.
"We're now better positioned to help Canadian SMEs get the solutions they need to grow into international champions," said Mr. Daignault. "We're also better placed to help companies of all sizes find growth through avenues like direct investment abroad and foreign affiliate sales, and by finding new connections and gateways to major global supply chains."
EDC's new customer count includes just over 1,000 new 'knowledge customers,' businesses that benefited from EDC's services like country risk ratings, sector outlooks, and how-to webinars. EDC has a unique knowledge set which is built from decades of international financial transactions in more than 180 markets. We have always shared this expertise with companies in an ad-hoc and informal manner, but in 2017 we started making that knowledge more accessible and consumable.
"Canadian companies need to be able to adapt and evolve, and they need a partner who can help them manage risk and support them through change," said Mr. Daignault. "That's why EDC is reshaping itself, to better meet the needs of Canadian companies today and anticipate what they might need tomorrow."
Among EDC's key achievements in 2017:
- A record CAD 1.5 billion in support for cleantech companies.
- Two Green Bonds issued totaling 1 billion (one bond of USD 500 million, and one of CAD 500 million), the proceeds of which go towards EDC's portfolio of green assets
- A record CAD 1.3 billion in EDC's export guarantee program (EGP) – this is a risk-sharing solution that EDC provides to the bank of an exporter. With the EGP in place, a bank can lend more confidently to an exporter or soon-to-be exporter knowing that EDC is guaranteeing a percentage of their loan (up to 100 per cent).
- Supported more than 500 Canadian Direct Investment Abroad (CDIA) transactions, helping Canadian companies connect with global supply chains around the world.
All these numbers add up to Canadian companies growing their impact abroad as well as within Canada. As a trading nation, with 60 per cent of our GDP dependent on trade, success abroad translates to more competitive businesses and a stronger economy at home. And, while EDC was able to accomplish record results in 2017, it also maintained a strong bottom line.
"EDC is ramping up today to help more companies than it ever has before, but it is equally important that the corporation maintain its strong financial position so we can continue providing effective support to companies over the long-term," said Ken Kember, Senior Vice-President, Finance and Technology Group and Chief Financial Officer. "We achieved that balance in 2017, finishing the year with CAD 60 billion in assets and CAD 1 billion in net income. We will also be paying a substantial dividend to the Government of Canada, our shareholder, in the amount of CAD 969 million."
In 2017 EDC created an international growth capital team, opened new domestic representations in Saskatoon and Charlottetown, and a new representation in Sydney, Australia. The organization also opened its first overseas standalone financing hub office, in Singapore, which in 2017 underwrote 13 loans for a total of CAD 728 million in financing.
"It's been a year of near-term achievement while we made important investments in the future," said Mr. Daignault.
Central to EDC's business focus are the following three key areas that bring value to Canadian exporters and investors and help expand Canada's reach and impact in global markets:
Facilitating Canadian direct investment abroad (CDIA)
- Total value of Canadian foreign investment transactions that EDC helped facilitate grew 16 per cent to CAD 14.3 billion – a record number for the corporation
- 30 per cent increase in the number of transactions in support of CDIA, reaching 508
Helping Canadian companies explore new markets (Diversification)
- While roughly 70 per cent of all Canadian goods and services exports are destined for the U.S. market, the proportion of EDC's financing and business facilitated in the U.S. in 2017 was approximately 40 per cent. The remaining majority was facilitated outside of the U.S. market, which highlights EDC's important role in diversifying Canadian trade
Creating opportunities by connecting Canadian companies with foreign buyers (Connections)
- EDC led 20 matchmaking events in 2017, engaging more than 100 foreign buyers and almost 450 Canadian suppliers
- EDC develops relationships with large foreign buyers with supply chain opportunities that match up well with Canadian capabilities. These foreign companies procured from more than 1,600 Canadian exporters in 2017 (up from 960 in 2016)
EDC released highlights of its 2017 corporate results today following a recent meeting of the Board of Directors. A complete Annual Report will be released in the second quarter.
About EDC
EDC helps Canadian companies go, grow, and succeed in their international business. As a financial Crown corporation, EDC provides financing, insurance, bonding, trade knowledge, and matchmaking connections to help Canadian companies sell and invest abroad. EDC can also provide financial solutions to foreign buyers to facilitate and grow purchases from Canadian companies.
For more information about how EDC can help your company, call 1-888-434-8508 or visit www.edc.ca.
SOURCE Export Development Canada
Phil Taylor, Export Development Canada, (613) 598-2904, [email protected]
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