may 2015 corporate overview supporting the international development sector
TRANSCRIPT
MAY 2015
CORPORATE OVERVIEW
Supporting the International Development Sector
› About EDC
› Overview of EDC products and solutions
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OUTLINE
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› Canada’s Export Credit Agency
› Crown corporation
› Financially self-sustaining
› Operates on commercial principles
› Role is to support and develop Canada’s export trade and international business via financing and insurance solutions for Canadian exporters and investors
› Partnership preferred principle
ABOUT EDC
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EDC’S FOREIGN REPRESENTATION
North America $54.5B (55%)Asia-Pacific $17.9B (18%)
Europe $13.5B (14%)
South / Central America $8.4B (9%)Africa / Middle East $4.5B (5%)
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CONNECTING WITH CANADIAN BUSINESSES ACROSS CANADA
› Facilitated $99.0 billion in business carried out by Canadian companies
› Served about 7,400 customers
› Supported business in 198 countries
› Facilitated $29 billion in emerging markets
› Contributed to 4% of GDP, supporting 719,200 jobs
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2014 PERFORMANCE HIGHLIGHTS
FEBRUARY 2015
OVERVIEW OF EDC PRODUCTS
› Protect against foreign buyer’s failure to pay
› Benefits
› Enter and expand into new markets
› Better access to bank working capital
› catastrophic loss protection
ACCOUNTS RECEIVABLE INSURANCE
edc.ca/insurance
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Line of Credit
Financial InstitutionForeign Buyer
Claim Payment
Exporter
Accounts Receivable
Goods orServices
Credit Insurance
Policy
Exporter
CREDIT INSURANCE
› Coverage for various political risks
› Protects foreign assets such as cash in local bank accounts from certain political events
POLITICAL RISK INSURANCE
edc.ca/pri
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EDC PRI on Assets Policy
Canadian Company with Assets Located in a Foreign Country
(equipment, inventories, cash)
Loan (asset financing)
Financial Institution
Direction to Pay Policy Claim Proceeds at the request of the insured Canadian Company
POLITICAL RISK INSURANCE (PRI) FOR ASSETS
FOREIGN BUYER FINANCING
› Guarantee to another financial institution in support of a loan to your foreign customer (transactions < $10 million)
› Direct financing to your foreign customer (transactions > $10 million)
edc.ca/financing
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› EDC provides Canadian banks with loan guarantees to finance costs related to foreign contracts
› Access to additional working capital
› fund up-front costs
EXPORT GUARANTEE PROGRAM
edc.ca/financing
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Exporter
Loan
Financial Institution
Guarantee
EXPORT GUARANTEE PROGRAM (EXPORT CONTRACT SPECIFIC)
BONDING SERVICES
edc.ca/bonding
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› EDC provides a guarantee to your bank allowing it to issue Standby LCs or LGs to your customers
› Get access to bonds without tying up cash
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100% Guarantee
Foreign Financial Institution
Letter of Guarantee
Counter Guarantee
Contract
Foreign Buyer Financial Institution
PSG Indemnity Agreement
PERFORMANCE SECURITY GUARANTEE
