Our Bank Guarantee Program provides cover to Canadian and international banks financing the sale of Canadian exports to customers in developing markets. The program is not applicable to syndicated credits, capital market instruments, structured or limited recourse transactions.
When the financed amount is USD 10 million or less, we guarantee financing for transactions, providing 95% or 100% cover on 85% of the export contract. The bank determines and retains the loan interest rate. The bank’s costs include a guarantee fee (OECD minimum premium rate plus a credit risk adjustment factor) and an administration fee of 25 basis points. Both are payable on the financed amount.
When the financed amount is greater than USD 10 million, we guarantee consensus transactions only. We provide 90% or 100% cover on 85% of the export contract. EDC and the bank jointly determine the loan interest rate, and the bank retains up to LIBOR (The London Interbank Offered Rate) plus 50 basis points from that rate. The bank’s costs include a guarantee fee (the OECD minimum premium rate) and an administration fee of 25 basis points. Both are payable on the financed amount.
We will provide 100% cover when:
- the bank is financing, on an uncovered basis, the down payment or local costs;
- the uncovered bank financing is repayable not fewer than two years subsequent to the repayment start date of the guaranteed facility; and
- the uncovered bank financing is at least equal to 15% of the contract value.