EDC and its relationship with

CARICOM

CARICOM Trade Development Forum

November 2-3 2011

Outline

2

Who we are

Business in the Region

EDC Solutions

CARICOM Country Overviews

2

About EDC

Canada’s Export Credit Agency

Crown corporation wholly owned by Government of Canada   

Financially self-sustaining

Operates on commercial principles

3

Facilitated $84.6 billion in business volume

Carried out $24.7 billion in emerging markets

Served 8,236 customers

Lima, Peru

Supporting Business Worldwide

EDC’s foreign representation

4

North America / Caribbean $47.5B (56%)

Asia-Pacific $15.2B (18%)

Europe $10.7B (13%)

South / Central America $5.5B (7%)

Africa / Middle East $5.4B (6%)

% = percentage of EDC’s total business volume

Location of EDC Representation

Monterrey, MexicoMexico City, Mexico

Santiago, ChileSão Paulo, Brazil

Moscow, Russia

Rio de Janeiro, Brazil

Abu Dhabi, UAE

Mumbai, India

New Delhi, India

Beijing, People’s Republic of China

Shanghai, People’s Republic of China

Singapore

Istanbul, Turkey

Panama

Düsseldorf, Germany

EDC Business Volume in Central America and Caribbean

20062007

20082009

2010

0

500

1000

1500

2000

2500

3000

Business Volume by Product

Insurance Financing

Mill

ions

CAD

Extractive33%

Information & Communica-

tion Tech-nology

9%

Infrastructure & Environ-

ment30%

Light Manu-facturing

2%

Resources24%

Transportation2%

Business Volume by Sector

2006 2007 2008 2009 2010400

500

600

700

452487

581559 557

Canadian Customers Served

$2.67 BILLIONIN TOTAL VOLUME

$558 MILLIONIN FINANCING

FINANCIAL HIGHLIGHTS

557 CUSTOMERSSERVED

Country Description FINANCING INSURANCE Grand Total Customers Served

Bahamas  -- 54,232,844.80  54,232,844.80 46

Barbados -- 15,686,501.22  15,686,501.22 58

Jamaica    118,852,557.04  151,736,449.62  270,589,006.66 66

Trinidad & Tobago -- 94,730,642.65  94,730,642.65 106

Total CARICOM 118,852,557.04 341,163,970.92 460,016,527.96 221

6

Top CARICOM Markets 2010 Business Volume

Top Canadian Exports to Bahamas

Industry 2006 2007 2008 2009 2010

Petroleum Refineries 5,587 51,104,650 193,453,955 106,975,223 121,173,499

Frozen Food Manufacturing 2,795,044 3,870,317 3,864,840 4,673,017 4,441,500

Flour Milling and Malt Manufacturing 2,636,033 2,782,831 2,563,491 2,975,304 2,835,829

Animal Slaughtering and Processing 1,369,855 1,949,668 2,324,416 2,179,872 2,159,961

Wood Kitchen Cabinet and Counter Top Manufacturing 1,034,172 458,279 446,844 862,372 1,480,092

TOTAL (All Industries) 51,274,779 91,212,774 226,435,848 146,232,146 150,620,044

7

Source: Trade Data Online (Industry Canada)

Top Canadian Exports to Barbados

Industry 2006 2007 2008 2009 2010

Animal Slaughtering and Processing 6,001,599 6,427,422 5,788,650 6,061,880 6,482,769

Seafood Product Preparation and Packaging 3,222,216 3,002,904 3,417,655 3,186,583 2,889,302

Paper Mills 5,401,777 2,587,228 3,934,408 4,287,382 2,397,401

Other Plastic Product Manufacturing 1,812,267 2,312,018 1,515,164 1,802,833 1,537,407

Ice Cream and Frozen Dessert Manufacturing 88,052 88,678 32,124 583,592 1,409,663

TOTAL (All Industries) 59,410,656 55,221,887 45,452,027 55,453,295 36,675,145

8

Source: Trade Data Online (Industry Canada)

Top Canadian Exports to Jamaica

Industry 2006 2007 2008 2009 2010

Wheat Farming 27,885,931 61,271,552 78,413,390 20,938,203 44,306,174

Seafood Product Preparation and Packaging 17,511,731 22,912,031 19,553,532 17,024,236 14,870,506

Animal Slaughtering and Processing 10,451,811 10,892,056 7,673,604 8,946,317 10,102,995

Pharmaceutical and Medicine Manufacturing 8,098,017 8,807,953 10,400,922 9,483,654 6,736,093

Electrical Equipment Manufacturing 2,549,821 6,540,844 6,599,073 5,676,979 5,435,250

TOTAL (All Industries) 146,080,833 190,216,492 188,019,810 118,407,289 125,076,072

9

Source: Trade Data Online (Industry Canada)

Top Canadian Exports to Trinidad & Tobago

Industry 2006 2007 2008 2009 2010

Iron Ore Mining               8,764,060 

        39,657,424 

           95,403,087 

         115,185,935 

         176,932,747 

Paper Mills            28,781,385 

           22,696,143 

           18,214,707 

           17,117,097 

           17,209,462 

Seafood Product Preparation and Packaging               9,370,269 

              9,348,781 

              8,919,934 

           11,644,154 

           10,088,840 

Animal Slaughtering and Processing               6,759,602 

              7,245,651 

              6,914,421 

              7,960,299 

              9,460,511 

Dry Pea and Bean Farming               3,993,971 

              4,958,352 

              7,103,040 

              5,495,551 

              6,046,562 

TOTAL (All Industries) 178,796,720

210,183,773

262,672,894

251,184,790

289,026,699

10

Source: Trade Data Online (Industry Canada)

EDC Priority Sectors in CARICOM

Infrastructure & Environment (hospitals, airports, ports, clean technologies)

Resources (fertilizer, paper, wood)

Information and Communication Technologies (equipment, software)

Extractive (oil and gas, mining)

Light Manufacturing (food products, medical technologies)

11

12

https://www.edc.ca/edcsecure/disclosure/DisclosureView.aspx 

Financing Transactions

USD 15-25 million

Jamaica2010

USD 100-250 million

Jamaica2010

USD 25-50 million

Bahamas2009

USD 5-15 million Trinidad and

Tobago2008

USD 1-5 million Barbados

2008

USD < 1 million

Trinidad and Tobago

2009

USD < 1 million

Trinidad and Tobago

2006

Overview of EDC Solutions

Accounts Receivable Insurance for Canadian Exporters and Investors

14

Protect against foreign buyer’s failure to pay

Enter and expand into new markets

Offer more flexible payment terms

Increase access to working capital

www.edc.ca/insurance

Financing for Canadian Companies or Foreign Buyers of Canadian Goods and Services

15 www.edc.ca/financing

Direct financing to foreign customer

Loan or guarantee to another financial institution

Lines of credit

Flexible financing options for foreign buyers

EDC assumes risk of non-payment

Financing for Canadian Companies or Foreign Buyers of Canadian Goods and Services

16

Structures

Corporate Financing

Project Financing*

Leasing (loan to lessor of asset e.g. plane)*

EDC mandate

Direct export by Canadian company

Canadian direct investment abroad*

Pull transaction*

Protocol

* Solely under commercial terms

Lines of Credit (Buyer Credits)

17

Current lines of credit provide access to financing in 26 countries

EDC pre-negotiates terms with foreign bank

Funds are disbursed to exporter

Fast turnaround provided on transactions

Export Guarantee Program

18

EDC provides your bank with loan guarantees to finance your export contracts

Get capital you need from your bank

Free up your line of credit

Meet up-front costs of export contracts

www.edc.ca/financing

Bonding Services

19

EDC provides a guarantee to your bank so it can issue guarantees to your customers and suppliers

EDC shares the risk with your surety company

Protect yourself from wrongful calls

Get bonds without tying up cash

www.edc.ca/bonding

Political Risk Insurance

20

Coverage for various political risks

Protects your assets, investments from certain political events

Increases access to cash from financial institution

Helps attract additional project capital

www.edc.ca/pri

Sovereign Non-Payment Coverage Characteristics

21

Comprehensive insurance covering default of scheduled loan payments (e.g. a sovereign’s inability & unwillingness).

Obligors include acceptable Borrowers and Guarantors: Sovereign (Ministry of Finance)

Sub-sovereign (state, provincial, municipal)

Quasi-sovereign entities (50% state owned, public purpose, etc.)

Coverage up to 95% of insured losses.

Coverage for both hard and local currency financing.

Why Partner with EDC?

22

Solidify risk profiles

Enhance competitiveness

Benefit from support in higher risk markets

Receive tailored coverage

EDC’s focus is to promote Canadian trade and investment

CARICOM Country Overviews

BAHAMAS

24

2006 2007 2008 2009 2010

020406080

100120140160

BUSINESS VOLUMESInsurance Financing

Mill

ions

CAD

2006 2007 2008 2009 201030

40

50

3635

40

37

46

CUSTOMERS SERVEDBASIC FACTS

Capital: NassauCurrency: Bahamas dollar (B$)Population (2010e): 345,000Total Area: 13,939 sq kmClimate: SubtropicalLanguage: EnglishType of Government: Representative democracyPresident: Hubert IngrahamNext Election: May 2012GDP (2010e at PPP): 8.9 billionGDP per Capita (2010e at PPP): 25,884

CONTACTS Stephanie Butt-Thibodeau  Regional VP- Mexico, Central America, and Caribbeansbutt-thibodeau@edc.ca613.598.3849 Alain Gauthier                          Chief Representative- Panamaagauthier@edc.ca613.598.2759 Teri NizzolaRegional Manager- Central America, and Caribbeantnizzola@edc.ca 613.598.3194

EDC BUSINESS VOLUME BY MARKET SECTOR CAD MILLIONS2006 2007 2008 2009 2010 Total

Extractive 20 21 102 16 4 163Info & Comm Tech 3 2 1 1 1 8Infra & Environment 31 16 31 56 45 179Light Manufacturing  4 1 0 1 1 7Resources 20 22 12 3 2 59Transportation 1 0 1 1 1 4TOTAL 79 62 147 78  54 420

-- Business volume less than $0.5m

BARBADOS

25

2006 2007 2008 2009 2010

0102030405060708090

100

BUSINESS VOLUMESInsurance Financing

Mill

ions

CAD

2006 2007 2008 2009 201030

40

50

60

3432

41

49

58CUSTOMERS SERVED

BASIC FACTS Capital: BridgetownCurrency: Barbados dollar (Bd$)Population (2008e): 276,000Total Area: 431 sq kmClimate: SubtropicalLanguage: EnglishGDP (2010e at current US$): 3.2 billionGDP per Capita (2009 current US$): 13,500

CONTACTS Stephanie Butt-Thibodeau  Regional VP- Mexico, Central America, and Caribbeansbutt-thibodeau@edc.ca613.598.3849 Alain Gauthier                          Chief Representative- Panamaagauthier@edc.ca613.598.2759 Teri NizzolaRegional Manager- Central America, and Caribbeantnizzola@edc.ca 613.598.3194

EDC BUSINESS VOLUME BY MARKET SECTOR CAD MILLIONS2006 2007 2008 2009 2010 Total

Extractive 18 1 1 1 1 22Info & Comm Tech -- 1 1 1 3 6Infra & Environment 1 -- 15 2 2 20Light Manufacturing  3 3 3 3 3 15Resources 6 26 6 8 7 53Transportation 57 -- -- -- -- 57TOTAL 85 31 26 15 16 173

-- Business volume less than $0.5m

JAMAICA

26

2006 2007 2008 2009 2010

0

50

100

150

200

250

300

350

BUSINESS VOLUMESInsurance Financing

Mill

ions

CAD

2006 2007 2008 2009 201055

65

75

85

59

72

67

79

66

CUSTOMERS SERVEDBASIC FACTS

Capital: KingstonCurrency: Jamaican Dollar (J$)Population (2006e): 2.67 millionTotal Area: 10,991 sq kmClimate: Tropical all yearLanguage: EnglishType of Government: Representative democracyGDP (2010e at PPP): 23.8 billionGDP per Capita (2010e at PPP): 8,745

CONTACTS Stephanie Butt-Thibodeau  Regional VP- Mexico, Central America, and Caribbeansbutt-thibodeau@edc.ca613.598.3849 Alain Gauthier                          Chief Representative- Panamaagauthier@edc.ca613.598.2759 Teri NizzolaRegional Manager- Central America, and Caribbeantnizzola@edc.ca 613.598.3194

EDC BUSINESS VOLUME BY MARKET SECTOR CAD MILLIONS2006 2007 2008 2009 2010 Total

Extractive -- -- 2 -- -- 2Info & Comm Tech 63 162 40 8 131 404Infra & Environment 4 84 86 99 95 368Light Manufacturing  6 6 7 7 5 31Resources 16 21 50 28 25 140Transportation 17 17 15 18 15 82TOTAL 106 290 200 160 271 1,027

-- Business volume less than $0.5m

TRINIDAD & TOBAGO

27

2006 2007 2008 2009 2010

0

50

100

150

200

250BUSINESS VOLUMES

Insurance Financing

Mill

ions

CAD

2006 2007 2008 2009 201090

100

110

120

130

140

100 98

125

118

107

CUSTOMERS SERVED

EDC BUSINESS VOLUME BY MARKET SECTOR CAD MILLIONS2006 2007 2008 2009 2010 Total

Extractive 101 34 34 34 34 237Info & Comm Tech 87 10 7 12 21 137Infra & Environment 9 1 3 17 2 31Light Manufacturing  2 5 4 4 4 19Resources 29 28 37 44 33 170Transportation 1 1 2 1 0 5TOTAL 229 79 87 112  94 601

BASIC FACTS

Capital: Port of SpainCurrency: Trinidad and Tobago dollar (TT$)Population (2010e): 1.22 millionTotal Area: 5,128 sq kmClimate: SubtropicalLanguage: EnglishType of Government: Parliamentary democracyPresident: George Maxwell RichardsNominal GDP (2009): $21 billion USD

CONTACTS Stephanie Butt-Thibodeau  Regional VP- Mexico, Central America, and Caribbeansbutt-thibodeau@edc.ca613.598.3849 Alain Gauthier                          Chief Representative- Panamaagauthier@edc.ca613.598.2759 Jean-Sebastien Charron          Senior Associate- Central America, and Caribbeanjcharron@edc.ca 613.598.2993

-- Business volume less than $0.5m

OttawaStephanie Butt-Thibodeau  Regional VP- Mexico, Central America, and Caribbeansbutt-thibodeau@edc.ca613.598.3849  Teri NizzolaRegional Manager- Central America and Caribbean tnizzola@edc.ca 613.598.3194  Jean-Sebastien CharronSr. Associate- Central America and Caribbeanjcharron@edc.ca613.598.2993

Berinder NehilAssociate- Mexico, Central America and Caribbeanbnehil@edc.ca613.598.6880

PanamaAlain Gauthier                          Chief Representative- Central America and Caribbeanagauthier@edc.ca613.598.2759

Angela VillalazCoordinator (DFAIT-LES)avillalaz@edc.ca507.294.2527

28

Central America and Caribbean Contacts

Direct Buyer Loans (Buyer Credits)

29

EDCForeign

Buyer/Borrower

Exporter

Financing Agreement

Scheduled Repayment of Principal and Interest

Deemed Drawdown

Contract Documents

Disbursement

Lines of Credit (Buyer Credits)

30

EDC

Exporter

Buyer Foreign Financial Institution/Borrower

Line of Credit Domestic Financing Agreement

Commercial Contract

31

Political Risk Insurance (PRI) for Non-Honouring of Sovereign Obligation

EDC

Canadian Company

Financial Institution

Local CompaniesSovereign Entity(ie. MOF)

Foreign Buyer or Project

EDC Non Honouring ofSovereign Obligation (NHS) Policy

Goods, Services or Investment

Loan

Financial Guarantee Goods, Services

or Investment