EDC's finance, bonding solutions now available to all Canadian suppliers into Hebron and White Rose platforms
ST. JOHN'S--Export Development Canada (EDC), Canada's leading financier and insurer of Canadian exporting companies, announced that Canadian companies providing supply and/or services into the Hebron and White Rose platforms can now access its financing, bonding and insurance products.
EDC recently concluded a review of the two platforms to assess the levels of production destined for international export markets, which confirmed the exporting focus of the projects and EDC's ability to provide financial services to their Canadian supply chain companies. The platforms count nearly 1,100 direct and indirect suppliers.
"Hebron and White Rose will play an important part of EDC's approach to the offshore oil and gas sectors going forward, focusing on making it easier for small and medium companies to meet the commercial requirements of supplying into the platforms," said David Surrette, Regional Vice-President, Atlantic Canada, EDC.
"EDC's core objective is to grow the export capacity of these companies, both into the platforms and hopefully beyond into new, international projects as well. Once EDC gets to know a customer, we can often help open doors with some of the world's leading multinationals when their needs and your offer match up well. In that way, EDC does more than provide financing, we invest in our customer's growth for the long term."
Suppliers to these types of projects can be required to post bid and performance bonds, which EDC can facilitate. Once a contract has been awarded, working capital may be needed by smaller companies to finance 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 NOIA (Newfoundland & Labrador Oil & Gas Industries Association) to make sure that their membership is aware of the services available to them.
More than 435 Canadian companies in Atlantic Canada used EDC products and services in 2012 to undertake more than CAD 3.2 billion in export trade.
In Atlantic Canada's oil and gas sector, EDC facilitated approximately CAD 1 billion in international sales in 2012, and approximately CAD 9.5 billion across Canada.
"If your business crosses a border, EDC has all the financing and insurance solutions that any Canadian company would ever need, small, medium or large," Surrette added.
In Atlantic Canada, EDC has offices in St. John's, Halifax, and Moncton 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.