Export Development Canada (EDC) is participating in a US$5.5bn credit facility for Pemex, Mexico’s national oil and gas company and a major buyer of Canadian goods and services.  EDC has been identified as a mandated lead arranger within the facility as it has extended more than US$250mn in financing.

EDC involvement with Pemex has increased steadily, reaching US$450mn in financing between 1998 and 2005. During the same period, Pemex has awarded more than 182 different contracts to 51 different Canadian companies with a total value of US$425mn.

“EDC’s relationship with Pemex is an excellent example of how EDC financing helps to facilitate export trade and create longstanding relationships between Canadian suppliers and foreign buyers,” says Eric Siegel, acting president of EDC. “Through EDC’s financing, Canadian companies will benefit from millions in new business in Mexico, a market of strategic importance to Canada.”

EDC was involved in 54% of Canada’s export trade with Mexico in 2005, and has facilitated more than C$15bn in trade since 2000. EDC has permanent representations in both Mexico City and the important industrial centre of Monterrey.  EDC’s foreign representations focus on building long-term relationships with key local buyers, to seek opportunities to match their procurement needs to Canadian expertise. EDC’s local presence helps Canadian customers enter key markets by providing important contacts, market intelligence and financial tools that help to close deals.

The US$5.5bn senior unsecured multi-tranche facility was mandated through the joint bookrunners BBVA Securities, Calyon New York, HSBC Securities, Citigroup Global markets, Santander Investment Securities and Bank of Nova Scotia.