(MUMBAI) November 14, 2007 Export Development Canada (EDC) today announced the appointment of Rajesh Sharma as Regional Manager for Mumbai and EDC's second permanent representative in India. Mr. Sharma is an Indian citizen with six years of experience in Mumbai's financial services sector.
"Our new representative will help us build on the growing volume of transactions EDC is facilitating between Canadian and Indian businesses in sectors ranging from telecom to construction," said Eric Siegel, President and Chief Executive Officer of EDC. "Since we posted our first representative in India in 2005, EDC's business volume in India has nearly doubled, from $375 million in 2005 to $730 million in 2006. By the end of this year, we expect to reach a volume well in excess of $1 billion."
Mr. Sharma is based at the Consulate General of Canada-Mumbai. "Mumbai has always been the financial nerve centre of India and continues to grow as a hub of international trade," said Mr. Sharma. "I look forward to helping EDC identify and generate new Indo-Canadian business opportunities in Mumbai and Western India."
Mr. Sharma will work closely with EDC's Chief Representative in India (New Delhi), Peter Nesbitt, to develop relationships and partnerships with local banks, companies and intermediaries. He will also collaborate with Canadian Consulate General officials in Mumbai, local chambers of commerce and key industry associations, and will provide on-the-ground support and market intelligence to EDC customers and prospects in the Mumbai region.
Canada exported $1.5 billion in goods to India in 2006, an increase of nearly 50 per cent over 2005 results. So far in 2007, Canadian export sales to India and most other emerging markets are posting double-digit growth rates. For EDC, almost one third of its business in the first half of 2007, or $12 billion, was trade in emerging markets, a 58 per cent increase from last year.
In addition to providing credit and contract insurance to Canadian companies exporting to India, EDC facilitated financing transactions with 10 key Indian companies so far this year, expediting and encouraging the purchase of Canadian goods and services.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 recognized as one of Canada's Top 100 Employers for seven consecutive years.
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Media contact:
Phil Taylor Public Affairs Export Development Canada (613) 598-2904 ptaylor@edc.ca
Peter NesbittChief Representative, IndiaExport Development Canada(011) 91-11-4178-2603pnesbitt@edc.ca------------------------------------------
EDC's Financing Activities in India 2007 As at November 14, 2007
Larsen & Toubro (November 2007): EDC committed USD 25 million in a USD 260 million syndication for Larsen & Toubro Limited, the leading engineering and construction company in India. EDC's participation will encourage and promote the use of Canadian technology, equipment and services in Indian infrastructure projects by L&T. Earlier this year (March 2007), EDC committed USD 20 million in another syndicated loan of USD 200 million.
Bharti Airtel (September 2007): EDC committed USD 50 million in a USD 100 million loan facility to Bharti Airtel Limited, India's largest telecom operator, to help expand Canadian telecom exports.
Tata Teleservices (September 2007): EDC committed USD 30 million in a USD 400 million syndicated loan facility to Tata Teleservices Ltd., for the procurement of telecom goods and services from Alcatel-Lucent (Canada). This long-standing supplier relationship has enabled Tata to expand India's telecom infrastructure.
Avigo (August 2007): EDC invested CAD 7.5 million in Avigo SME Fund II (USD 125 million), an Indian private equity fund which invests in high growth, small and medium-sized industrial enterprises. This offers the opportunity to connect Canadian small and mid-sized businesses with like-minded enterprises in India.
Varun Beverages (August 2007): EDC concluded financing for Canada's Husky Injection Molding Systems (Husky) with Varun Beverages, facilitating a USD 729,000 sale of equipment. Varun Beverages is India's largest Pepsi bottler and an important client of Husky.
VSNL (June 2007): EDC committed USD 40 million to VSNL, India's leading international telecom service provider and parent company of Teleglobe Inc. (Canada), to procure the latest technology from Nortel and other Canadian firms.
RIL (May 2007): EDC committed USD 100 million in a USD 2 billion syndicated loan to Reliance Industries Limited (RIL), India's largest private sector company, involved in oil and gas exploration, petrochemicals and retailing. The loan is expected to increase procurement from Canadian oil and gas equipment and service suppliers. It augments a USD 200 million syndicated corporate facility for RIL, signed in February 2007, in which EDC also participated (USD 17 million).
ICICI Bank (March, 2007): EDC signed a USD 50 million line of credit (LOC) with ICICI Bank. The LOC will assist ICICI Bank's customers who are interested in procuring capital goods and services from Canadian sources and will facilitate projects between Canadian and Indian companies.
TACO (March 2007): EDC concluded a financing arrangement with Tata Autcomponent Systems Limited (TACO) to facilitate a CAD 1.1 million sale of equipment by the Indian affiliate of Canada's Husky Injection Molding Systems (Husky). TACO is part of the Tata Group, one of India's leading business conglomerates.
Vodafone Essar (January 2007): EDC concluded a CAD 34 million participation in a loan to Vodafone Essar Limited (formerly Hutchison Essar Limited) and its subsidiaries. This will facilitate the purchase of goods and services from Canada's telecom sector.
