Export Development Canada (EDC) today announced a USD 850 M commercial financing deal with telecom giant Vodafone that will generate important connections and new business for many Canadian companies.
Vodafone has mobile operations in 26 countries, partners with mobile networks in 53 more, and fixed broadband operations in 17 markets. As of 30 September 2014, Vodafone had 438 million mobile customers and 11 million fixed broadband customers.
"Very simply, Vodafone's global presence makes it a company that Canada's telecom sector has to have a relationship with," said Carl Burlock, Senior Vice-President, Financing and Investment, EDC. "At its core, EDC's relationship with Vodafone is about building connections between them and our Canadian telecom suppliers."
Vodafone is an important BlackBerry customer, who in turn is an important anchor company within Canadian telecom.
"These large transactions are not just about financing sales between two big companies, they are also a small business story," explained Burlock. "One of the advantages in Canada's trade toolkit is EDC's financing, which provides us with direct access with senior decision makers within Vodafone."
EDC targets foreign companies like Vodafone whose procurement needs match up with existing Canadian expertise. EDC takes the time to get to know and understand what the foreign companies need and where they want to grow. With that knowledge, EDC seeks out Canadian companies that meet those needs and introduces them to senior buyers, in this case, within Vodafone.
"When Canadian companies win business after our introductions, EDC can provide them with financing to support their continued success," said Burlock.
Since 2003, EDC has made about $25 billion in loans to more than 200 foreign companies, leading to more than $38 billion in business with about four thousand Canadian companies.
"It's a position of privilege that pays important dividends to Canadian companies. That 50 per cent premium is a good return on investment for Canada, by any standard," concluded Burlock.
EDC is Canada's export credit agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public- sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.
For more information about how EDC can help your company, call us at
1-888-434-8508 or visit www.edc.ca.
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Phil Taylor
Export Development Canada
(613) 598-2904
ptaylor@edc.ca
