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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • India would have done well not to supress the 'Bofors interview'

    Bofors is one case that refuses to go away two-and-half decades after it grabbed public attention and became a byword for political corruption, claimi

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Varun Dutt

THE BLAME GAME

In decision-making, the fundamental attribution error (FAE), also known as ...

Zehra Naqvi

Dignity of labour is dignity of life

M Rafi Khan, a retired police IG, used to ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture