Scotiabank is the first of the big five banks to join EDC’s expanded export guarantee programme (EGP).
Scotiabank will use the EGP as a guarantee for applicable loans advanced to their exporting clients for up to 90% of the loan total, and up to 100% on Canadian direct investment abroad (CDIA).
“Scotiabank is very active abroad, and its solid understanding of mitigating risk in international markets is a natural fit with EDC’s export guarantee programme," says Eric Siegel, president and CEO of EDC. “EDC’s guarantees can further assist Scotiabank in helping clients that are either expanding or breaking into export markets.”
“Scotiabank is pleased to be a part of the expanded EGP, which will enable us to provide our clients with additional financing solutions and increase our flexibility to accommodate their individual needs,” says Alberta Cefis, executive vice-president and head, global transaction banking, Scotiabank.
For loans up to and including C$500,000, EDC recently increased the coverage to banks from 75% to 90%. For loans between C$500,000 and C$10mn, EDC now covers up to 75% compared to 50% previously.
Acknowledging the growing importance of CDIA to increase a company’s trade capacity, EDC can now provide up to 100% coverage for qualified financing related to such investments when they are part of a larger package of bank credit.
In 2008, 314 small and medium enterprises benefited from EDC’s export guarantee products, up from 172 in 2007. The overall guarantee coverage, used by 22 Canadian financial institutions, was valued at over C$323mn, an increase from C$220mn in 2007.
Reader Comments