October 25, 2004 Export Development Canada (EDC) concluded four financial agreements that will facilitate an additional USD 133.9 million (CAD 166 million) in export sales to Mexico. "Canada's trade relationship with Mexico remains strong, and these transactions are the most recent examples of this," said Gilles Ross, EDC acting president. "EDC is committed to ensuring that Canadian exporters and investors continue to tap into the full range of opportunities that the Mexican market offers by continuing to structure and deliver the financing and insurance that they need to identify opportunities and close deals." Credit facilities to Mexican companies such as Nemak, Navistar and Galvak will benefit Canadian exporters in the automotive and industrial equipment sectors, while the bonding guarantee for Q'Max Solutions will facilitate the export of equipment and services from Alberta's oil and gas sector. The details for each transaction are as follows: EDC and Nemak: EDC participated, at the Arranger level, by taking a USD 15 million (CAD 19 million) position in a USD 270 million (CAD 340 million) credit facility to Mexico's leading auto parts manufacturer Nemak. This facility will allow Nemak to increase its purchase of Canadian goods and services. In 2003, as Lead Arranger, EDC provided USD 30 million (CAD 37.3 million) in financing for the expansion of Nemak's Windsor, Ontario aluminum auto part casting plant, which supplies exports to the automotive industry in the U.S. This is EDC's fourth financing to Nemak. EDC and Navistar: EDC signed a USD 40 million (CAD 50.4 million), 5 year term credit facility with Servicios Financieros Navistar and Arrendadora Financiera Navistar. This facility represents both an increase and a renewal of an existing credit facility signed in 2001 to allow the wholesale and retail financing arms of Navistar to increase international truck sales and to support the modernization of the truck and bus fleet of Mexico. EDC and Galvak: EDC increased its collaboration with industrial equipment manufacturer Galvak by taking a USD 10 million (CAD 12.4 million) position in a new USD 175 million (CAD 217 million) credit facility at the Lead Manager level. This credit facility will enable Galvak to procure Canadian capital goods and services for its Mexican operations. EDC and Q'Max: Q'Max Solutions of Calgary, Canada's largest independent drilling fluids service company, has won a contract with Mexican oil company PEMEX worth USD 68.9 million (CAD 85.6 million). EDC is supporting the issuance of a USD 6.9 million (CAD 8.5 million) performance bond that was issued with respect to this contract. Since EDC first established its permanent representation in Mexico in April 2000, and then again in 2002 in Monterrey, business volume in that country has grown from CAD 1.2 billion in 1999 to CAD 2.45 billion in 2003. EDC provides trade finance and risk management services to Canadian exporters and investors in up to 200 markets. Founded in 1944, EDC is a Crown corporation that operates on commercial principles. - 30 - Daniela Pizzuto EDC, Public Affairs, Tel.: (613) 598-6829 E-mail: dpizzuto@edc.ca
