Export Development Canada (EDC) is providing financing of US$20mn in a US$200mn syndication for Larsen & Toubro (L&T), a leading engineering and construction company in India.
EDC’s participation will encourage the use of Canadian products or services in Indian infrastructure projects managed by L&T.
EDC had also signed a US$50mn dollar line of credit with ICICI Bank, which was announced earlier this week.
“EDC opened its first representation in New Delhi in 2005. Since then, EDC-facilitated trade and investment with India grew from CAD 375mn in 2005 to a record-breaking C$730mn in 2006,” says Eric Siegel, president and CEO of EDC. “Early in 2007, we have already completed two new financing transactions to help grow existing Canadian contracts or create new Canadian business opportunities in India.”
EDC helped more than 150 Canadian companies increase their trade with India in 2006. Close to 45% of EDC’s business volume in India last year consisted of financing, through loan syndications for major Indian buyers, to promote the purchase of Canadian goods and services.
L&T is a technology-driven engineering and construction organisation, and one of the largest companies in India’s private sector. It has additional interests in manufacturing, services and information technology.