Docstoc

EDC - Master Corporate Presentation

Document Sample
EDC - Master Corporate Presentation Powered By Docstoc
					  How to Mitigate Risks
When Doing Business in the
      United States
         May 20, 2009




                             1
       Corporate Information

Export Development Canada (EDC) is Canada’s

export credit agency, offering innovative financing,

insurance and risk management solutions to help

Canadian exporters and investors expand their

international business.


                                                       2
           Corporate Mandate
At EDC our mandate – to support and develop,

directly or indirectly, Canada’s export trade and

Canadian capacity to engage in that trade, as well as

to respond to international business opportunities –

guides everything we do.


                                                       3
     EDC Financial Solutions
1.   Credit Insurance

2.   Contract Insurance & Bonding

3.   Financing




                                    4
                                            Volume by Program
                                                                              $51.0
                                                                                65%
               $50


               $40

                                                                    Source: EDC Data 2003
               $30

                                            15%
               $20
                              13%           $12.6          7%
                             $7.0                          $7.1
               $10


                  $0
                                      CIB           FIN           PRI                       ARI

Source: EDC Data 20067 – Business Review    $ = Billions                                          5
                       EDC International Volume (billion)

                                 South Central
                                   America       Africa/Mid East
                                     5.09              5.63        Asia/Pacific
                                     7%                7%              8.89
 North America &
                                                                      11%
    Carribean
      49.827
       65%
                                                                                  Europe
                                                                                   8.09
                                                                                   10%




Source: EDC 2007 annual report
                                                                                           6
                                Customers Served by
                                 Market Sector Team
                                                               Legend

                                                               TRN – Transportation
                        2500               2209                RES – Resources
                                                               LTM – Light Manufacturing
                                                               INF – Infrastructure & Environment
                                                               ICT – Information and
                        2000                                   Communication Technologies
                                                               EXT - Extractive


                        1500
                                                  1136
                                     966                 981
                        1000   727
                                                                436
                        500


                          0
                               TRN   RES   LTM    INF    ICT   EXT
Source: EDC Data 2007
                                                                                            7
           Credit Insurance
1.   Accounts Receivable Insurance (ARI)

2.   Contract Frustration Insurance (CFI)

3.   Single Buyer Insurance




                                            8
    Accounts Receivable Insurance
•   Protect against losses when your U.S. buyer
    can’t or won’t pay with 90% coverage

•   Enter new markets and expand existing ones

•   Offer your customers more flexible payment
    terms – up to 180 days

•   Increase your access to working capital with
    your financial institution
                  www.edc.ca/insurance             9
    Contract Frustration Insurance (CFI)
•   Single contract insurance that provides work-in-
    process and receivables protection

•   Covers up to 90% of eligible losses arising from a
    wide range of commercial risks.

•   CFI is targeted specifically to Canadian exporters of
    capital goods or services and their Canadian suppliers

•   Available on a fully selective basis, provided the
    associated risks and Canadian benefits are acceptable


    CFI is a single contract alternative to EDC’s Accounts Receivables
                                Insurance policy.
                                                                         10
             Single Buyer Insurance
•   Alternatively you can consider covering your sales to
    only one customer with our Single Buyer Insurance

•   Cover an unlimited number of payments due by the
    same customer, up to $250,000, in a six-month period

•   Policy insures up to 90% of your losses if you don’t get
    paid after your goods have been accepted by the buyer

•   Targeted to the occasional exporter who have infrequent
    insurance needs (one or two exports a year)

•   Simplified application process and policy to make it quick
    and simple to use
                       www.edc.ca/singlebuyer.
                                                                 11
                  EXPORT Check

Helps you decide how much (if any) credit you might
want to extend to a potential U.S. or foreign customer.

 Promptly determine your buyer’s credit profile with:
        1) EDC Opinion Reports
           ● Obtain key credit and financial information on
             U.S. or foreign companies as well as an
             opinion as to whether the company is
             insurable
        2) Dun & Bradstreet Information Reports
           ● Fast and easy access to detailed credit
             information reports on foreign companies.
                                                              12
Contract Insurance & Bonding
            (CIB)


         www.edc.ca/insurance
         www.edc.ca/bonding


                                13
    Contract Insurance & Bonding
               Services

● Bank Instruments guaranteeing contract performance
   Performance Security Guarantees (PSG)

   Performance   Security Insurance – wrongful call (PSI)
● Bank Instruments guaranteeing contract performance
● Foreign Exchange Facility Guarantee (FXG)
● Financial Security Guarantee (FSG) – Offshore and
  Supplier
● Surety Bond Reinsurance (SBI)
                                                         14
Financing Solutions for Exporters


 ● Export Guarantee Program

 ● Direct Buyer Loans



             www.edc.ca/financing
                                    15
         Export Guarantee Program

•   A risk sharing guarantee designed to encourage
    Financial Institutions to advance loans to smaller
    exporters by providing additional security

•   Guarantee covers the Financial Institution’s credit facility
    for :
        Up to 90% for guarantees ≤ 500k
        Up to 75% where EDC’s exposure is between 500K and 10.0
         million
        Up to 100% for guarantees in support of qualifying foreign
         investment-related credit facilities of Canadian companies.
•   Existing operating lines of credit are not affected.
•   Financial Institution is responsible for funding and
    perfecting security
                                                                       16
      Export Guarantee Program
●    Loans can be used to cover WIP financing needs for
     direct exports as well as indirect (i.e. component sub-
     supply in Canada related to a product that is ultimately
     exported).
●    Approved loans can be up to 100% of the contract costs.
●    The term of the loan is linked to the payment terms
     identified in the commercial contract.

Variations of support:
1. Contract Specific – One-off or “Bulge” facility to
     specifically support an export contract.
2. Revolving Facility – specifically support a series of
     purchase orders or contracts knowing each deal is
     covered under the guarantee

                                                            17
         Export Guarantee Program
Variations of support: (Cont’d)

3.  Operating Facility – A general corporate
    purpose facility to be administered by the
    provider in support of day to day operational
    activities.
4. Term Loan Facility –
    Infrastructure investment in Canada relating to
      specific existing export contracts;
        Foreign Direct Investment to support the
         acquisition of a foreign asset or company.
                                                       18
Direct Buyer Loans (Buyer Credits)
● Tailored specifically to your commercial
  contract

● Disbursed to you by EDC on behalf of the
  borrower

● Meets the credit needs of your foreign
  buyer

● Offered at competitive interest rates & fees
                                                 19
QUESTIONS?




             20
           Thank you

 Harold Riley – District Manager, Quebec
  (514) 215-7210 – hriley@edc.ca




                                            21

				
DOCUMENT INFO