Export Development Canada (EDC) is investing US$50mn in a US$1bn infrastructure fund in India to provide Canadian companies with opportunities to participate in major projects. The investment is EDC's largest single equity investment to date.
The fund is managed by IDFC Project Equity Company, and it invests in infrastructure projects involving energy and utilities, transportation, telecommunications and social infrastructure in India.
"IDFC has a solid track record of project finance and private equity experience in infrastructure in India, and is well positioned to become an important partner for Canadian exporters in this priority market,” comments Eric Siegel, president and CEO of EDC.
“India's strong economic growth and government initiatives to channel more private capital into all sectors are expected to lead to massive infrastructure growth.”
EDC is increasingly focusing its equity programme on emerging markets, sourcing new potential partners and customers for Canadian companies.
In 2007, EDC approved C$190mn in investment commitments, out of which C$140mn were in international funds.
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