(OTTAWA) August 9, 2007 Export Development Canada (EDC) today announced its USD 100 million participation in a 10-year, USD 2 billion syndicated loan for Reliance Industries Limited (RIL) of India.
RIL will apply the funds towards a gas exploration and development project, which has a projected capital expenditure of USD 5.2 billion, off the east coast of India. Niko Resources of Calgary is a 10 per cent stakeholder in the project.
"EDC's business in India continues to expand as Canadian exporters find meaningful ways to grow their business in this opportunity rich market," said Eric Siegel, President and CEO of EDC. "While a number of Canadian companies already have dealings with Reliance, EDC is pleased to have entered into this facility to help develop Canadian relationships with one of India's most important companies."
EDC business volumes in the Indian market have grown considerably following the opening of its permanent representation in New Delhi in 2004, growing from CAD 267 million at the close of 2003 to CAD 730 million in 2006. EDC currently facilitates approximately 48 per cent of Canada's merchandise trade with India. EDC has particularly highlighted the infrastructure, telecommunications, automotive, agrifood processing and storage, mining and energy sectors as growth areas for Canada-India business. EDC is currently planning on opening a second permanent Indian representation in Mumbai by the end of 2007.
RIL is India's largest private-sector company and part of the Reliance Group, a multi-faceted corporation with interests in the exploration and production of oil and gas, the manufacture of petroleum and petrochemicals products (polyester, fibre intermediates, plastics and chemicals), synthetic textiles, fabrics and mass retailing. Reliance Group employs more than 25,000 employees and exports more than USD 5 billion in goods to more than 100 countries annually. Reliance Group companies include RIL, Indian Petrochemicals Corporation Ltd., Reliance Petroleum Limited and Reliance Retail Limited.
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 6,400 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, EDC (613) 598-2904 ptaylor@edc.ca
