(OTTAWA) – March 14, 2008 – Export Development Canada (EDC) is investing USD 50 million, its largest single equity investment to date, in the proposed USD 1 billion infrastructure fund in India to provide Canadian companies with new opportunities to participate in major projects in the booming Indian market. The fund will be managed by IDFC Project Equity Company Limited.
The IDFC-sponsored India Infrastructure Fund will invest in infrastructure projects involving energy and utilities, transportation, telecommunications and social infrastructure in India.
"IDFC has a solid track record of project finance and private equity experience in infrastructure in India, and is well positioned to become an important partner for Canadian exporters in this priority market," said Eric Siegel, President and CEO of EDC. "India's strong economic growth and government initiatives to channel more private capital into all sectors are expected to lead to massive infrastructure growth."
EDC's equity investments are adding capacity to the equity market in Canada and building relationships and networks internationally through investments in foreign funds. A growing portion of EDC's equity program is focused upon emerging markets where they help to develop new potential partners and customers for Canadian companies. In 2007, EDC approved CAD 190 million in investment commitments, of which CAD 140 million were in international funds.
IDFC Project Equity Company Limited is a wholly owned subsidiary of Infrastructure Development Finance Company Ltd. (IDFC) based in Mumbai. IDFC is a financial institution focused on project finance and investment banking activities in infrastructure, and its mission is to be the financier and advisor of choice for infrastructure in India.
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 seven consecutive years.
-30-
Media contact:
Phil Taylor
Public Affairs
Export Development Canada
(613) 598-2904
ptaylor@edc.ca
