(OTTAWA) – August 26, 2009 – Export Development Canada (EDC) today announced it has signed a line of credit for USD 30 million with China Gas Holdings Limited of Hong Kong, the first time EDC has ever signed a commercial line of credit with a Chinese buyer of Canadian exports.
Under the terms of the deal, China Gas will purchase compressed natural gas (CNG) equipment from IMW Industries Ltd. of Chilliwack, British Columbia.
“EDC’s commercial solution for China Gas not only provided a customer for a valued Canadian exporter, but helped to build links in China for Canadian supply and expertise in the energy sector,” said Stephen Poloz, Senior Vice-President, Financing Products Group. “This deal represents the first commercial line of credit EDC has arranged for a Chinese buyer, which will help to expand EDC’s presence in this key market.”
In April of this year, International Trade Minister Hon. Stockwell Day and Mr. Poloz witnessed the signing of the Memorandum of Understanding (MOU) on procurement between China Gas and IMW Industries, a matchmaking relationship strengthened by EDC’s participation in previous China Gas syndicated loans.
The line of credit over five years will provide financing for equipment purchases by China Gas which is building a network of natural gas fueling stations for buses and taxis. The natural gas distribution industry in China has been named a national priority and is set for strong growth as the Chinese government establishes reforms and regulations to make the business more sustainable and environmentally beneficial.
“The CNG car refueling industry in China is so large and so new that a sound and reliable technical support on our expeditious business rollout plan will be the key for us to capture the market share quickly,” said Mr. Minghui Liu, Managing Director of China Gas. “China Gas plans to build at least 120 CNG refueling stations in the coming three years. We are glad to team up with IMW Industries as our major equipment supplier in this business in China, and are particularly delighted to have EDC enhancing our relationship with IMW and providing us with this export credit facility to finance our business rollout. This demonstrates EDC’s trust and confidence in China Gas in this business prospect in China.”
“This transaction is a successful example of how Canadian companies can, with EDC’s support, provide world class technology around the globe,” said Brad Miller, President of IMW Canada. “This project will reduce greenhouse gas emissions by over 150,000 tonnes over the next three years, a significant achievement for China.”
China Gas Holdings Limited is a natural gas services operator, principally engaging in the investment, construction and management of city gas pipeline infrastructure, distribution of natural gas and LPG to residential, industrial and commercial users, construction and operation of oil stations and gas stations, and development and application of oil, natural gas and LPG related technologies. Major shareholders of the Company include the Haixia Economy and Technology Cooperation Centre under the Taiwan Affairs Office of the State Council of China, Asian Development Bank, Sinopec, the second largest oil and gas company in China, and Gail (India) Limited, the largest natural gas company in India under the control of Indian federal government, and Oman Oil Company, S.A.O.C., and SK Group, the largest energy company in Korea. To date, China Gas owns a total of 121 natural gas projects, including exclusive piped gas development rights in 110 cities and regions, eight natural gas pipeline transmission projects, one natural gas exploration project, and one natural gas purification project, as well as the license to import and export LNG and other fuel products in China, and 35 LPG distribution projects.
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 more than 8,300 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining, a recognized leader in financial reporting and economic analysis, and has been recognized as one of Canada’s Top 100 Employers for eight consecutive years.
Phil Taylor
Export Development Canada
Tel: (613) 598-2904
Blackberry: ptaylor@edc.ca
