Export Development Canada announced a US$100 million financing deal with metalsa, S.A de C.V. (metalsa), a Mexico-based OEM producer of automotive structures such as chassis, suspension, cradles and stamping.
The financing will be used for general corporate purposes, upsizing and extending an existing credit facility that metalsa has with EDC.
The financing is also designed to help open doors for Canadian businesses to enter metalsas supply chain, which is considerable given they are direct suppliers to auto-giants like Toyota, Ford and Chrysler.
Our financing for foreign buyers can pay important dividends to Canadian companies, said Carl Burlock, Senior Vice-President, Financing and Investment, EDC. Since we began working with metalsa more than 15 years ago, weve seen their Canadian supply increase by more than 800 per cent. That, by any standard, is a good return on EDCs efforts to introduce new suppliers to metalsa.
EDC gets to know and understand what foreign companies like metalsa need, and wher they want to grow. With that knowledge, EDC seeks out Canadian companies that meet those needs and introduces them to senior buyers.
For example, metalsa is currently interested in Canadian companies that could supply tooling, stamping, fixtures and prototyping services for their new projects in Mexico and the US.
If your company meets these needs, please contact us; were always looking to make introductions, added Burlock.
EDC is Canadas leading provider of financing, insurance and bonding products for small Canadian companies that have business outside of Canada. EDC also provides financial services for foreign companies that buy from Canadian companies, or those that have Canadian supply and services in their corporate value chains.
EDC has accompanied and supported metalsa continuously in its global growth as a financial partner. We are very pleased to have such a strong relationship with a financial institution that understands our needs and brings value-added solutions to the table, said Arturo Méndez, Director of Financing and Treasury of Grupo Proeza (holding company of metalsa).
Since 2003, EDC has made about $25 billion in loans to more than 200 foreign companies, leading to more than $38 billion in business with about 4,000 Canadian companies.
Mexico is a strategic market for Canada, as outlined in the Governments Global Market Action Plan, and is also a market of corporate priority for EDC.
SOURCE Export Development Canada
