(OTTAWA) April 3, 2007 Export Development Canada (EDC) announced that it launched a USD 1 billion 3-year Global Bond on Tuesday, the first global bond of its size in its corporate history. EDC last issued a global bond of USD 500 million in 2003.
The global bond was issued to support EDC's funding needs, thereby enabling EDC to support more Canadian exporters and investors to do more business internationally and help grow Canada's export trade.
"EDC was pleased to provide investors with a rare opportunity to purchase a sovereign Canadian credit of the highest AAA quality," said Marie MacDougall, Vice President and Treasurer. "The magnitude of this bond represents a significant milestone for EDC and we are delighted by the positive reception investors have shown."
Market response to the bond book was very positive, quickly becoming over-subscribed with high quality investors. The distribution by investor type was 65 per cent central banks and official institutions, 15 per cent fund managers and insurance companies, 10 per cent banks and financial institutions and 10 per cent pension funds. The geographic distribution of investors was led by Asia (42 per cent), followed by Europe, Middle East and North Africa (31 per cent) and North America (27 per cent).
The transaction was jointly lead-managed by BNP Paribas, HSBC Bank plc, RBC Capital Markets Corporation, TD Securities (USA) LLC. Co-Lead Managers were: ABN Amro Bank N.V., Bank of Montreal, London Branch, Canadian Imperial Bank of Commerce, London Branch, Citigroup Global Markets Inc. (CGMI), Dresdner Bank AG, London Branch, Merrill Lynch Pierce Fenner & Smith, Mizuho International plc, National Bank Financial Ltd, Scotia Capital Inc and Shinkin International Ltd.
The bonds were issued at a price of 99.776 per cent and will pay a coupon of 4.625% per annum through semi-annual payments. This gives investors a yield of 4.706 per cent (s.a.), equivalent to a spread of 21 basis points above the underlying US Treasury bond.
Details as follows:
Amount: USD 1 BillionSettlement date: April 3, 2007Coupon: 4.625% per annum, payable semi-annually Maturity Date: April 1, 2010Issue price: 99.776Spread: 21 basis points over the underlying US Treasury 4 ¾ February 15, 2010Interest payment dates: April 1, October 1Listing: Luxembourg, Euro MTF MarketForm of notes: Global noteClearing systems : Euroclear, Clearstream, DTC, CDS
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 has been named one of Canada's Top 100 Employers for six consecutive years.
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Media contact:
Phil Taylor Public Affairs Export Development Canada (613) 598-2904 ptaylor@edc.ca
