SOURCE: Export Development Canada

Export Development Canada

April 23, 2015 00:01 ET

Export Development Canada Loans Volkswagen Group EUR 400 M for the Expansion of Its North American Operations

DUSSELDORF, GERMANY--(Marketwired - April 23, 2015) - Export Development Canada (EDC) today announced financing of EUR 400 M to Germany-based Volkswagen Group (Volkswagen).

The corporate financing is focused upon Volkswagen's expansion of their operations in the Southern United States (US) and Mexico.

Volkswagen, one of the world's leading automobile manufacturers, comprises twelve brands from seven countries, and holds a 12.9 per cent share of the 2014 world passenger car market. The group generated sales revenues of EUR 202.5 B and an operating profit of EUR 12.7 B in 2014.

EDC is a global commercial lender to foreign companies that have, or are open to considering, business with Canadian companies.

"Given the growing presence of Canadian toolers and auto parts manufacturers into key automotive hubs like the Southern U.S. and Mexico, a natural alignment developed with the interests of Volkswagen," said Klaus Houben, Senior Regional Manager, Europe, EDC.

"Canadian suppliers are already well positioned to offer innovation and cost savings to OEMs, two things that will be of value to Volkswagen as they grow their operations in these markets," added Houben. "EDC's role is to bring financial capacity to make that expansion easier."

As a mature global financier, EDC brings stability and reliability of capital to their international customers. With annual business volumes nearing CAD 100 B, EDC has the capital and experience necessary to undertake transactions of any size in support of transactions involving Canadian supply or services.

EDC has permanent representations in Mexico City, Monterrey, Rio de Janeiro, São Paulo, Santiago, Lima, Bogota, Düsseldorf, Istanbul, Dubai, Shanghai, Beijing, Mumbai, New Delhi, and Singapore.

About EDC

EDC is Canada's trade finance agency, providing financial services for companies that buy from Canadian companies, directly or through their corporate value chains. EDC's financing can be used for capex and/or project finance requirements, either through bilateral or syndicated corporate facilities. Operating on commercial principles, EDC has a partnership-preferred philosophy to collaborate with private-sector financial institutions to share risk and create greater capacity for Canadian trade transactions.

Contact Information

  • Spokesperson
    Phil Taylor
    Export Development Canada
    (613) 598-2904
    ptaylor@edc.ca