OTTAWA, August 22, 2006 Export Development Canada (EDC) today announced financing for DaimlerChrysler México Holdings, S.A. de C.V. (DCM) to facilitate sales to Mexican purchasers of vehicles manufactured by DaimlerChrysler Canada.
The first transaction conducted in Mexican pesos for EDC, the facility will total MXN 2.1 billion (approximately USD 200 million) and will be used to fund DCM's financing services subsidiary, DaimlerChrysler Financial Services Mexico S.A. de C.V. (DCS). DCS extends local financing and leasing services to wholesale and retail buyers of DaimlerChrysler vehicles, many of which are imported from DaimlerChrysler Canada.
"This transaction exemplifies EDC's desire to have a direct impact upon Canada's exports in key sectors and important markets for Canada," said Eric Siegel, Chief Operating Officer, EDC. "This agreement will be of great benefit to the 12,000 employees of DaimlerChrysler Canada and the hundreds of part suppliers located across Canada."
Citigroup acted as Financial Advisor to assist DaimlerChrysler Mexico in raising the Mexican Peso equivalent of USD 200 million from Export Development Canada.
DCM purchased more than USD 110 million worth of vehicles from DaimlerChrysler Canada in 2005, as well as USD 140 million in purchases from Canadian companies located in Canada and USD 12 million in parts and tooling from Canadian-owned subsidiaries in Mexico.
Mexico is a top priority market for Canadian exporters and represents EDC's second largest market, after the United States. From 1994-2003, EDC supported over CAD 14.3 billion in business to Mexico. In 2004 alone, EDC supported over CAD 1.9 billion in trade with Mexico.
DaimlerChrysler Canada has been a prominent member of the Canadian motor vehicle industry for over 80 years. Based in Windsor, Ontario, DaimlerChrysler Canada was the second-largest manufacturer and wholesaler of passenger cars, trucks and automotive components in the Canadian auto industry in 2005.
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: Phil TaylorPublic AffairsExport Development Canada (613) 598-2904ptaylor@edc.ca
