(Sao Paulo) March 22, 2006 - Export Development Canada (EDC) announced today the signing of a financing transaction with Votorantim Participacoes (VPAR) of Brazil. EDC will be the lender of record for USD 82 million within a larger syndicated facility.
"EDC is pleased to be working with Grupo Votorantim, one of Brazil's most prominent and diversified companies and a key buyer of Canadian exports," said Rob Wright, President and CEO of EDC. "Through EDC's participation, Canadian exporters from a broad range of sectors will be able to sell their expertise and resources into the Brazilian market, which is a trade zone of tremendous importance to Canadians."
Grupo Votorantim is amongst the largest business groups in Brazil. Its companies are leaders or have large shares in all the markets of cement production, cellulose, paper, aluminum, zinc, nickel, long steel, polypropylene bioriented films, chemical specialties and orange juice. It also has an important share of the financial sector through Banco Votorantim and an active participation in the energy sector.
VPAR has a strong history of purchases from Canadian companies, particularly within the pulp and paper sector. Between 2000 and 2003, VPAR contracted for over USD 25 million from Canadian companies. Looking forward, EDC has identified prospective Canadian suppliers who have the capacity and capabilities to supply VPAR with capital purchases to an approximate value of USD 50 million. In addition, VPAR operates their North American headquarters for cement from Toronto and has made recent acquisitions in the US Great Lakes region.
When speaking of Brazil's importance to EDC, Mr. Wright noted that "EDC was involved in over 70 per cent of Canada's exports to Brazil in 2005, and has done over $7 billion in business there over the last five years alone. To punctuate the value that EDC places upon Canada's trade relations with Brazil, two of our eight permanent representations in the world's most strategic markets are here."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 7,000 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and is a recognized leader in financial reporting, economic analysis and human resource management.
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Media contact:
Claudio EscobarChief Representative, BrazilExport Development Canada55 11 8208 2480cescobar@edc.ca
Phil TaylorPublic AffairsExport Development Canada(613) 598-2904ptaylor@edc.ca
