Export Development Canada (EDC)

Institution type Export Credit Agency
Ownership Government of Canada (a Crown Corporation)
Head office  Representation in Southeast Asia Export Development Canada, 150 Slater Street, Ottawa, Canada, K1A 1K3

EDC Office in Singapore
Canadian High Commission, One George Street, #11-01, Singapore 049145
Rating  Moody’s Aaa, S&P AAA
Contingent liability limit   $45.0 billion
Major instruments  Export credit insurance, political risk insurance, guarantees, and loans.
Information  http://www.edc.ca
Email contact: export@edc.ca
Tel : (613) 598-2500
Summary

Export Development Canada (EDC) is the Canadian export credit agency. Its objective is to foster Canadian economic growth and support domestic companies’ exports and investments by providing a broad range of financial products. These products include insurance, guarantees, bonding products and financial services. Insurance products protect Canadian exporters’ against overseas transaction risks, such as credit insurance and political risk insurance covering domestic exporter losses due to non-payment and unpredictable political risks. Committed to the principles of corporate social responsibility (CSR), it is a self-sufficient agency that relies financially on loan interests and premium collection despite being a Crown corporation operating on behalf of the government of Canada.

EDC has developed partnerships with various private financial institutions to provide bonds, guarantees and financial products. EDC supports companies in finding financing solutions by providing its financial capacity and sharing the risks with the private sector.

List of EDC Products :

Insurance Products :

  • Credit Insurance
  • Contract Frustration Insurance
  • Performance Security Insurance
  • Political Risk Insurance

 

Bonding and Guarantee Solutions :

  • Account Performance Security Guarantee
  • Surety Bond Insurance
  • Foreign Exchange Facility Guarantee

Financing :

  • Export Guarantee Program
  • Foreign Buyer Financing
  • Foreign Investment Financing
  • Customer Financing Guarantee
  • Structured and Project Finance

Example of relevant products for private infrastructure investments
Instrument Political Risk Insurance (PRI)
Instrument type Insurance
Eligible investments, borrowers, and projects Overseas investments that are beneficial to Canada including :
• Direct investment with joint venture or foreign subsidiary
• Loans issued to a joint venture or foreign subsidiary
• Physical assets held overseas
• Loans issued directly to sovereign borrowers or guaranteed by sovereign borrowers.
Eligible beneficiaries  Private sector companies, lenders
Interests insured Equity: equity (paid-in-capital)
Debt: Loans, shareholder loans, loans to sovereign and semi-sovereign obligors
Assets: equipment, inventory, cash accounts, other physical assets
Risk types covered • Creeping or outright expropriation
• Political Violence
• Transfer and Convertibility restrictions
• Repossession
• Non-payment by a government
Maximum tenor • PRI of Assets: up to 5 yrs
• PRI of Investment (Equity): up to 10 yrs
• PRI of Loans and Non-Honoring of Sovereign Obligations Insurance (NHS): up to 20 yrs
Maximum amount or cover   • Asset coverage: 90% of eligible losses, no stated project limit
• Equity coverage: 90% of eligible losses, no stated project limit
• Bank loans: up to 100% of eligible losses, no stated project limit
• Non-Honouring of Sovereign Obligations coverage: 90% – 95% of eligible losses, no stated project limit
Fees Premiums based on country, industry, and transaction characteristics and number of risks covered; discounts apply if more than one risk is insured against.