Export Development Canada (EDC) has earmarked $750 million to support small and medium-sized enterprises (SMEs) in Canada’s oil and gas industry that have been impacted by commodity price declines. EDC said it will lend support to companies investing in key areas. They include productivity improvements; infrastructure that will increase market access for resources; new technologies that diversify products; and advances in environmental sustainability. A trade finance agency, EDC is funded through the fees and interest charged on its loans and insurance policies.
EDC earmarks CAD 750 M for Canadian SMEs in oil and gas sector
CALGARY, Feb. 25, 2016 /CNW/ – Export Development Canada (EDC) today announced it will make up to CAD 750M of financial capacity available to Canadian companies to help support the Canadian oil and gas sector (O&G) during this challenging time.
“The prolonged downturn in the price of oil has had a profound impact on Canada’s smaller supply and service companies,” said Mairead Lavery, Senior Vice-President, Business Development. “Our goal is to make sure that well run companies have the financial tools they need to get through this downturn. We want them to be ready to take advantage of the turnaround when it happens.”
The focus of the CAD 750 M effort will be on SMEs, where the additional liquidity can be most effective in sustaining employment and strengthening the economy. Particular emphasis will be put placed on helping companies making investments in four key areas: increasing a company’s productivity, infrastructure that will increase market access for resources, investing in new technology that can help diversify their products to different industries, and building the sector’s environmental sustainability.
Mark Senn, Regional Vice-President, Western Canada, will oversee the CAD 750 M envelope. “We know there are many smaller companies across Canada with solid fundamentals that are financially stressed, and those are the companies that we can really help to make it through this period of lower oil prices,” Senn said. “EDC is open for business in Canada’s O&G sector, and we want to help as many export-minded companies as we can.”
EDC products make it easier for Canadian companies to grow and diversify their international business. It does so through a range of solutions for both Canadian companies and their foreign customers, all designed to make it easier for both parties to do business with each other and to help grow Canadian trade overall.
EDC operates on commercial principles and does not receive annual funding from the federal government. Its operating costs are funded solely through the fees and interest charged on its loans and insurance policies.
Canadian companies in the O&G sector that are looking for commercial financial solutions are invited to contact Mr. Senn directly at firstname.lastname@example.org or 1-403-817-6704.
EDC is Canada’s trade finance 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 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 we can help your company, call us at 1-888-434-8508 or visit www.edc.ca.
For further information: Spokesperson: Phil Taylor, Export Development Canada, (613) 598-2904, email@example.com
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