EDC-Mabe agreement promotes new Canadian exports to Mexico
MEXICO CITY – January 11, 2005— Export Development Canada (EDC) has concluded a financial agreement with manufacturing giant Mabe that will facilitate USD 22.5 million in new Canadian export sales to Mexico.
“EDC is pleased to be working with an important Mexican company like Mabe to build on the ever-growing trade relationship between Canada and Mexico,” said Gilles Ross, Acting President of EDC. “EDC has established a strong relationship with Mabe and this agreement will help the company improve on an already healthy Canadian procurement track record.”
“We are pleased that EDC has strengthened their relationship with Mabe by participating in this landmark syndication. We view the success of this transaction as a reflection of Mabe’s solid financial profile and strong operational capacity,” said Javier Cayon, Vice-President & Chief Financial Officer of Mabe. “The renewed association with Export Development Canada will benefit Mabe and its Canadian suppliers, as we continue to expand our operations and explore new opportunities.”
EDC increased its collaboration with Mabe, Mexico's largest household appliances manufacturer, by taking a USD 22.5 million position in a new USD 400 million syndicated credit facility. This facility will allow Mabe to procure even more Canadian goods, equipment and raw materials for the fabrication of their products.
Since EDC established permanent representation in Mexico City in 2000, and in Monterrey in 2002, business volume with Mexico has grown from CAD 1.2 billion in 1999 to about CAD 2 billion in 2004.
Mabe produces, distributes and sells “white line products”, specifically ranges, refrigerators, washing machines, built-in ovens and cooktops, water coolers, microwave ovens and related parts and components. Its products, marketed under the GE, Mabe and other local brand names, are sold primarily in Mexico, the United States, Canada, and Central and South America. Mabe operates 10 plants in Mexico and four in South America.
EDC provides trade finance and risk management services to Canadian exporters and investors in up to 200 markets. Founded in 1944, EDC is a Crown corporation that operates on commercial principles.
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Media contact: Glen Nichols EDC-Public Affairs Tel: (613) 598-2876 glnichols@edc.ca
