Export Development Canada’s (EDC) year end results show a significant increase in the amount of transactions that supported the international business of Canadian companies in 2016, as well as a record CAD 28 billion in financing transactions.
“EDC’s customers continued to expand their trade and investments outside Canada despite the headlines that suggest a global slowdown in trade-related activity. We are particularly enthused to see a greater number of smaller companies engaging with international markets and increasingly interested in making foreign investments,” said Benoit Daignault, President and CEO, EDC.
Mr. Daignault explained that “EDC’s unique global financial, risk, and trade expertise allowed us to deliver real value to customers in a challenging environment, which provided the support they needed to ensure successful outcomes for their business.” EDC noted several key achievements in 2016, including:
- A record CAD 1 billion in support for cleantech companies.
- A record CAD 107 million in early-stage growth capital for small businesses, including CAD 56 million in direct financing and CAD 51 million in equity funding.
- More than CAD 550 million in direct financing for SMEs, a 166 per cent increase in the amount financed and an 84 per cent increase in the number of transactions.
- More than CAD 200 M in financing to boost liquidity for smaller Canadian oil and gas companies struggling with a prolonged lower-price environment. These loans were provided under a CAD 750 M financing initiative announced in 2016 that focused on helping companies invest in new technology to help diversify their products to different industries.
- A record CAD 1 billion in EDC’s export guarantee program, which helps smaller companies access financing to develop new markets, increase productivity or to make international investments.
- More than 500 Canadian Direct Investment Abroad (CDIA) transactions, helping Canadian companies connect with global supply chains around the world.
- World’s first foreign financial institution to issue a rupee-denominated loan: A landmark transaction that showcases a distinct local-currency advantage for Canadian companies active in India.
EDC supported more than CAD 100 billion of Canadian exports and foreign investments in 2016, serving 7,100 Canadian companies.
“EDC’s ability to extend more financial support to Canadian companies during challenging times is predicated upon a strong balance sheet, and we finished 2016 with total assets growing to $63 billion and a net income of $1 billion,” said Ken Kember, Senior Vice-President, Finance and Technology Group and Chief Financial Officer. “These positive results also allowed EDC to declare a dividend of $786 million to our shareholder, the Government of Canada.”
EDC is the leading provider of financing and insurance solutions for small- to medium-sized Canadian companies engaging in international trade. EDC is also a global financing partner to Canada’s large anchor companies, who often bring along smaller Canadian suppliers when they expand into new markets.
“An increasingly important part of Canada’s trade story is the additional business activity generated by foreign investments,” added Mr. Daignault. “Canadian companies with foreign affiliates have reported additional sales that created positive impacts on employment at the Canadian parent. EDC is there to support these foreign investors with 19 representations around the globe, including new locations in Jakarta and London added in 2016.”
Central to EDC’s business focus are the following four key areas that bring value to Canadian exporters and investors:
Providing a financial toolkit for small- and medium-sized enterprises (SMEs)
- 9% increase in small business transactions, reaching 3,188 (38% of total EDC transactions).
- 6% increase in SME business transactions, reaching 4,555 (84% of total EDC transactions).
- 8% decrease in total dollar amount of business facilitated for Canadian SMEs (CAD 14.2 billion), with 25 % of that business in emerging markets.
Enabling Canadian business in emerging markets
- 5% increase in total business facilitated, reaching $30.6 billion.
- Canadian companies access close to 150 countries with emerging economies using EDC’s services.
Facilitating Canadian direct investment abroad (CDIA)
- Total value of Canadian foreign investment transactions that EDC helped facilitate remained steady at CAD 12.4 billion.
- 14% increase in the number of transactions in support of CDIA, reaching 508.
Creating opportunities by connecting Canadian companies with foreign buyers
- EDC led 18 matchmaking events in 2016, engaging more than 200 foreign buyers and almost 400 Canadian suppliers (83% of which were SMEs).
- EDC develops relationships with large foreign companies with supply chain opportunities that match up well with Canadian capabilities. These foreign companies procured from more than 960 Canadian exporters in 2016, of which nearly 70% were SMEs.
EDC released highlights of its 2016 corporate results today following a meeting of the Board of Directors. A complete Annual Report will be released in the second quarter.
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage. As international risk experts, we equip Canadian companies with the tools they need – the trade knowledge, financing solutions, equity, insurance, and connections – to take on the world with confidence. Underlying all our support is a commitment to sustainable and responsible business.
For more information and to learn how we can help your company, call us at 1-888-434-8508 or visit www.edc.ca.