Reliance gets $500 million financing from Canada agency

Tags: Companies
Reliance Industries today said it secured $ 500 million financing from export credit agency Export Development Canada (EDC).

The transaction is among the largest financing packages the EDC has extended in Asia, the company said in a statement.

"We have been partnering with a wide section of Canadian suppliers for materials, equipment and services across our hydrocarbon businesses over the last 4-5 years and we are also engaging with them for our telecom business rollout," said Srikanth Venkatachari, RIL's joint Chief Financial Officer.

The deal with EDC will provide impetus to foster trade between RIL and Canadian companies over the coming years, he said.

EDC provided the financing in response to the increasing business that RIL has been undertaking with Canadian companies since 2004, when EDC first became one of its financiers.

The new financing package helps diversify RIL's funding sources and extends the maturity profile of its long-term debt in a cost-effective manner.

"RIL is a global leader in many sectors that match up well with Canadian industrial expertise, creating a natural partnership that benefits both of our priority interests," said Rajesh Sharma, EDC's Senior Vice-President and Global Group Head, Business Development.

Since 2010, RIL has been doing business with about 50 Canadian companies. Of these companies, 33 per cent were small-to-medium-sized companies. EDC has been actively engaged with RIL for making introductions to Canadian capabilities.

Sharma said EDC introduces Canadian companies to RIL that not only meet specific supply chain needs, but can help them grow their global business. "Everybody wins in this deal."

India is a strategic market for Canada. EDC is looking to grow the amount of financing that it offers to Indian companies for their capital expenditure.

Canadian and Indian companies used EDC's financial services to undertake 1.8 billion Canadian dollars of business in 2013 alone.

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