export development canada presentation to canadian forage and grasslands december 14, 2010
TRANSCRIPT
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Export Development CanadaPresentation to
Canadian Forage and Grasslands
December 14, 2010
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About EDC
Canada’s Export Credit Agency
Crown corporation wholly owned by Government of Canada
Financially self-sustaining
Operates on commercial principles
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2009 Performance Highlights
Record business volume of $82.8 billion
Served 8,469 customers
Supported business in 190 countries
$18.7 billion in emerging markets
Contributed to 5% of GDP, supporting 642,000 jobs
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Lima, Peru
Supporting Business Worldwide
EDC’s foreign representation
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North America / Caribbean $50.3B (61%)
Asia-Pacific $12.6B (15%)
Europe $10.2B (12%)
South / Central America $4.5B (5%)
Africa / Middle East $5.0B (6%)
% = percentage of EDC’s total business volume
Location of EDC Representation
Monterrey, MexicoMexico City, Mexico
Santiago, Chile
Warsaw, Poland
São 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 (Opening in September)
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Risk Mitigation
Insurance Products
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Accounts Receivable Insurance
Mitigates risks in unknown markets with unknown customers
Increases margin value on operating credit
Used as a marketing tool to provide short term buyer credit
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Political Risk Insurance
Insures assets or investments against
Expropriation (creeping or outright)
Political Violence
Conversion
Breach of Contract
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Surety and Bonding
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Bank Guarantees
Performance Security Guarantee (PSG)
Indemnifies the Bank for 100% of L/C issued in support of Bid Bond, Performance Bond or Warranty Bond.
Can be augmented with Performance Security Insurance (PSI) to cover wrongful of L/C.
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Bank Guarantees
Financial Security Guarantee (FSG)
Indemnifies the Bank for 100% of L/C issued in support of security requirements. (i.e. CGC Grain Bond, supplier deposit, foreign line of credit)
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Financing
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Financing
Canadian Direct Investment Abroad
Provides direct financing for assets or investments abroad
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Financing
Buyer Financing
Provides term financing for buyers of Canadian goods and services (Direct and/or Indirect)
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Financing
Export Guarantee Program
Provides 50% - 90% government guarantee to Bank in order to provide additional security value for export projects
EDC shares in security held by the Bank
Guarantee Fee is for the account of the client. (0.25bps set + quarterly flat fee)
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