Export Development Canada, the country’s export credit agency, has issued one of the largest lending packages in its history to Reliance Industries Limited (RIL).
The Indian company has borrowed US$500mn from EDC to be used in unspecified projects, but which will ensure it uses Canadian supplies of materials, equipment and services in its hydrocarbon business.
RIL’s joint-CFO Srikanth Venkatachari says: “We have been partnering with a wide section of Canadian suppliers for materials, equipment and services across our hydrocarbon businesses over the last four to five years and we are also engaging with them for our telecom business rollout. We have more than a decade-long relationship with EDC, and this landmark deal will provide further impetus to foster trade between RIL and Canadian companies over the coming years.”
Rajesh Sharma, EDC’s senior vice-president and group head, global business development says that India is a strategic market for Canada’s exports and hopes that this loan will help strengthen bilateral ties.
He says: “A strong relationship with EDC helps RIL benefit from a global source of mature and dependable financing in a capital-constrained global economy. In turn, EDC introduces Canadian companies to RIL that not only meet their specific supply chain needs, but that can help them grow their global business. Everybody wins in this deal.”