Toronto: Export Development Canada (EDC) has announced its $100 million (Rs406 crore) participation in a 10-year $2 billion syndicated loan for Reliance Industries Limited (RIL).
RIL will use the funds for a gas exploration and development project. “EDC’s business in India continues to expand as Canadian exporters find meaningful ways to grow their business in this opportunity rich market,” Eric Siegel, president and CEO of RDC, Canada’s largest export credit agency, said.
Siegel said: “While a number of Canadian companies already have dealings with Reliance, EDC is pleased to have entered into this facility to help develop Canadian relationships with one of India’s most important companies.”
EDC business volumes in the Indian market have grown considerably following the opening of its permanent representation in New Delhi in 2004, from CAD$267 million at the close of 2003 to CAD$730 million in 2006.
EDC currently facilitates approximately 48% of Canada’s merchandise trade with India. EDC has particularly highlighted the infrastructure, telecommunications, automotive, agrifood processing and storage, mining and energy sectors as growth areas for Canada-India business.
It is currently planning on opening a second permanent Indian representation in Mumbai by the end of 2007. RIL is India’s largest private-sector company and part of Reliance Group.