May 8, 2007
SANDTON, South Africa May 8, 2007 Export Development Canada (EDC) today signed a co-operative Memorandum of Understanding (MOU) with Rand Merchant Bank (RMB) for a USD 150 million facility to increase new Canadian involvement in Sub-Saharan projects and help grow the business of Canadian companies already operating in Africa.
Under this MOU, EDC and RMB have both committed up to USD 75 million on a risk sharing basis. Sub-Saharan Africa is emerging as a strong growth market for both Canadian investors and exporters. In particular, Canadian companies are active in such sectors as mining, transportation, oil and gas, infrastructure and telecommunications. Canada is the largest non-African investor in the mining sector in Sub-Saharan Africa.
"By partnering with FirstRand, EDC will be in a much stronger position to identify new opportunities for Canadian companies, at an earlier part of the development cycle, through transactions being pursued by FirstRand" said Benoit Daignault, EDC's Senior Vice President Business Development. "As one of South Africa's leading banks, FirstRand will enhance EDC's regional knowledge and its risk mitigation capacity in Sub-Saharan Africa. "
The signing ceremony was held at RMB's head office in Sandton, during a visit to South Africa by Mr. Daignault, and Rizwan Haider, EDC's Regional Manager for Africa. Alan Pullinger and Peter Hayward-Butt, Co-Heads of Investment Banking, signed on behalf of RMB.
RMB is the investment-banking arm of FirstRand, a large financial services group listed on the stock exchange in Johannesburg. RMB has funded projects in more than 30 African countries in areas ranging from mining and infrastructure to trains and mobile phone networks. These sectors of focus reflect Canada's industrial expertise and export sector strengths in Africa.
Export Development Canada 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 contacts: Phil Taylor Public Affairs Export Development Canada (613) 598-2904 ptaylor@edc.ca orLeslie SilverstoneCo-head: Infrastructure Finance - Investment BankingRand Merchant Bank Office: +27 11 282 8323Mobile: +27 82 787 9229e-mail: leslie.silverstone@rmb.co.za
