Export Development Canada (EDC) has announced it will contribute US$100mn towards the US$2bn 10-year syndicated loan for Reliance Industries of India (RIL).

RIL will use the funds to support a gas exploration and development project off the east coast of India, which has a projected capital expenditure of US$5.2bn. Niko Resources of Calgary is a 10% stakeholder in the project.

The volume of business EDC has in the Indian market has grown significantly since it opened a permanent representation in New Delhi in 2004. Earlier this year the export credit agency announced it would establish its second Indian office in Mumbai by the end of this year.

“EDC’s business in India continues to expand as Canadian exporters find meaningful ways to grow their business in this opportunity rich market,” comments Eric Siegel, president and CEO of EDC. “While a number of Canadian companies already have dealings with Reliance, EDC is pleased to have entered into this facility to help develop Canadian relationships with one of India’s most important companies,” he adds.

EDC facilitates 48% of Canada’s merchandise trade with India, and has pinpointed infrastructure, telecommunications, automotive, agrifood processing and storage, mining and energy sectors as potential growth areas for Canada-India business.
RIL is India’s largest private sector company and part of the Reliance Group which incorporates Indian Petrochemicals, Reliance Petroleum and Reliance Retail.