ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - May 30, 2014) - Export Development Canada (EDC) today announced that Canadian companies, mostly small- and -medium sized (SMEs), now have access to EDC's many financial services to help them manage the costs of providing supply and/or services into the Muskrat Falls hydro-electric facility in Newfoundland.
EDC is Canada's leading financier and insurer of Canadian exporting companies. EDC recently concluded a review of the Muskrat Falls project that confirmed that the level of production destined for international export markets meets EDC's exporting criteria, opening up its financial services to all of the Canadian suppliers of Muskrat Falls.
The project's development could several hundred companies supplying products or services.
"The Muskrat Falls project matches up with EDC's approach to the offshore energy sector, and our intention is to make it easier for SMEs to manage their cash flows when they supply into the project," said David Surrette, Regional Vice-President, Atlantic Canada, EDC.
"Taking a longer term view, EDC wants to help these companies take their first steps into selling internationally. Once EDC gets to know a customer, we can help open doors to some of the world's leading multinationals when their needs and your offer match up well. EDC does more than provide financing, we can help you win new business."
EDC is Canada's leading financier and insurer of Canadian exporting companies, providing financing (for Canadian companies and their international buyers), insurance (making sure they get paid from international buyers and protecting their foreign investments), guarantees (helping your bank provide access to financing to help you deliver on your contract) and bonding (helping companies meet the financial requirements of contract bonds).
EDC's services can also help Canadian companies finance their foreign investments, such as setting up a foreign subsidiary.
Suppliers to Muskrat Falls can be required to post bid and performance bonds, which EDC can help with. Once a contract has been awarded, cash and financing may be needed by smaller companies to finance these new requirements. EDC's export guarantee program and performance security guarantees can play a critical role in helping a company's bank increase the amount of financing it can offer.
EDC will be working closely with Nalcor energy and Emera Incorporated to make sure that EDC is delivering the right financial tools for suppliers to the project. The Muskrat Falls project includes the generating facility, the Labrador - Island transmission link, and transmission assets and the Maritime link.
More than 413 Canadian companies in Atlantic Canada used EDC products and services in 2012 to undertake more than CAD 3.1 billion in export trade.
EDC has 17 offices across Canada to answer any questions that Canadian companies may have about how to grow their international sales, or how to make that first export sale.
EDC is Canada's export credit agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public- sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.
For more information about how EDC can help your company, visit www.edc.ca.