Export Development Canada (EDC) will provide C$150mn towards a C$600mn credit facility for Air Canada involving four other lenders, including the government of Canada.
“EDC’s new domestic powers have allowed it to provide timely and critical financing to Air Canada, with our involvement supporting significant and tangible benefits to Canada,” says Eric Siegel, president and CEO.
The loan is provided on commercial terms and at market rates consistent with the risk profile of the transaction.
EDC’s support is complemented by that of government of Canada, which has lent C$100mn through its Canada account. The other lenders include ACE Aviations Holdings, General Electric Capital Markets and Aeroplan.
Canada account is used when a transaction falls outside the scope of EDC's corporate account, usually due to a combination of risks, including the size of the transaction, market risks, country capacity, borrower risks or the financing conditions, but nevertheless is determined by the federal government to be in Canada's national interest.