EDC provides first long-term local currency loan to Mexico's CFE

MEXICO CITY, Oct. 28 /CNW/ - Export Development Canada (EDC) today announced it provided its first long-term financing in Mexican Pesos, valued at approximately USD 200 million, to Mexico's Comisión Federal de Electricidad (CFE) to encourage more procurement from Canadian companies.

"By providing our new loan in pesos to match CFE's peso revenues, EDC is adapting our services to meet the real market needs of a valued foreign buyer. CFE in turn has taken an active interest in potential Canadian suppliers, participating in two recent matchmaking sessions organized by EDC," said Stephen Poloz, Senior Vice-President of Financing, EDC. "This kind of flexibility and collaboration is what trusted partnership is all about,"

For borrowers that primarily generate revenues in their domestic market, a local currency loan means they do not need to worry about foreign currency fluctuations and the related business risks.   

Mr. Poloz added that, in recent years, EDC also provided a USD 50 million line of credit to CFE for the purchase of Canadian goods and services, which was virtually used up in 2008 to 2009.

"This is a good sign that EDC's new loan to support CFE's robust capital expenditure program will lead to even greater supply opportunities for Canadian companies," he said.

The Federal Electricity Commission (CFE), which is owned by the Mexican government, generates, distributes and markets electric power for some 34.2 million customers.

During the global recession of 2009, EDC facilitated some CAD 1.1 billion in Canadian exports and investments in Mexico, a testament to the resiliency of trade between the two countries. As the global economy slowly recovers, EDC expects this business volume will reach CAD 2 billion this year.

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 8,400 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 nine consecutive years.

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Export Development Canada
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