SANTIAGO, Chile, November 16, 2004 -- Export Development Canada (EDC) today announced the conclusion of three financial agreements during 2004 that will facilitate CAD 165.1 million in Canadian export sales to Chile. "Canada has gained from building a close trade relationship with a high performing country like Chile and Canadian businesses are profiting from a growing list of transactions with Chile's top companies," 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 Chilean market offers by continuing to structure and deliver the financing and insurance that they need to identify opportunities and close deals." Speaking in Santiago, Chile, Gilles Ross shared this message with an assembly of Chilean and Canadian businesses hosted by Export Development Canada. Mr. Ross is also in Chile to participate in the CEO Summit of the Asia Pacific Economic Cooperation (APEC) forum, as well as to hold personal meetings with heads of major companies and financial institutions from Chile, Canada and other APEC countries. Canada was the first member of NAFTA, the OECD and the G-7 to sign a free trade agreement with Chile. EDC has played a significant role in developing that trade relationship, and since 2001, has supported almost CAD 1.2 billion in business in the Chilean market. EDC has recently negotiated important credit facilities to Chilean companies such as Inversiones CMPC, Codelco, and Compania Cervecerias Unidas (CCU) which underscore its commitment to the Chilean market. These commercial agreements will benefit Canadian exporters in the pulp & paper, industrial equipment, mining and agri-food sectors. The details of each transaction are as follows: EDC and Inversiones CMPC: On September 2, 2004, EDC contributed CAD 57.8 million to a CAD 546 million loan syndication to Inversiones CMPC, a major Chilean pulp & paper company. This credit facility will ensure the procurement of various Canadian goods and services to Chile's pulp and paper industry. EDC and CODELCO: EDC has supported Chilean copper mining giant Codelco with financing totaling CAD 95.2 million in 2004. On June 21, 2004, EDC provided financing of CAD 33.7 million; EDC is the lone export credit agency in a consortium of 14 financial institutions participating in this CAD 404.6 million syndication. On September 27, 2004, EDC also took a CAD 61.5 million position, at the Arranger level, in a CAD 738 million facility. EDC's participation in these credit facilities will increase the purchase of Canadian goods by the world's largest copper producer. EDC and Compania Cervecerias Unidas (CCU): On November 5, 2004, EDC took a CAD 12.1 million position in a CAD 121 million credit facility negotiated for the holding company of Chile's largest beverages group, to secure the procurement of Canadian beverage manufacturing equipment and services. Over the last three years, EDC has extended an average of CAD 316 million annually in trade finance and risk management services to finance or insure annual export sales and investments in support of Canadian companies selling or investing in the Chilean market. As of the end of October 2004, EDC has supported 160 Canadian exporters competing in Chile. 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. EXPORT DEVELOPMENT CANADA 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. EDC and Chile: Chile presents many trade and business opportunities for Canadian companies through exports and investments. EDC's mandate is to support and develop Canada's export trade and it plays a key role in helping Canadian firms realize these opportunities by providing the necessary financial and insurance services that companies from both countries need to close deals. Chile is an important trade destination for Canadian exporters and investors, as it is for EDC. Canada was the first member of NAFTA, the OECD and the G-7 to sign a free trade agreement with Chile. EDC has played a significant role in developing that trade relationship and since 2001, EDC supported almost CAD 1.2 billion in business to Chile. In 2003 Canada became the second largest source of direct foreign investment in Chile according to figures released by that country's Foreign Investment Committee, accounting for 14.6 per cent of capital flows for investment projects. The sector that attracted most investment continues to be mining (30 per cent) followed by transport and telecommunications (26.6 per cent) and general industry (18.4 per cent). All of EDC's trade finance services are available in Chile and the number of Canadian companies selling to or investing in Chile has been growing steadily. In 2003, EDC services were used by 186 Canadian companies selling to or investing in the Chilean market. EDC's commitment to Chile is a long-term one and EDC is dedicated to building relationships in support of Canadian companies and their partners throughout the Chilean market. EDC has recently signed several lines of credit and other financial arrangements to support procurement by Canadian suppliers to major Chilean companies such as CODELCO, INVERSIONES CMPC and COMPANIA CERVECERIAS UNIDAS. Other key relationships maintained by EDC include companies such as ENAP, HQI, PELAMBRES, BHP and FINNING, among others. EDC is continually reviewing its agreements with all its Chilean partners to create more opportunities for Canadian exporters and investors. EDC's representatives based in Brazil are also able to provide on-the-ground support and regional expertise in Chile. This relationship management focus, combined with EDC's industry sector expertise in Canada, is helping to identify new Canadian supply opportunities and provide EDC with important insight into how to structure tailored and competitive financial proposals. EDC's representatives work closely with the Canadian Embassy, Canadian Chambers of Commerce and Industry Associations around Chile, to create synergy and further impetus to Canadian-Chilean commercial relations in the region. - 30 - Information: Glen Nichols Public Affairs Export Development Canada Tel.: (613) 598-2876 E-mail: glnichols@edc.ca
