Canadian Direct Investment Abroad
Canadian companies interested in expanding their facilities abroad or making a new investment in a foreign country, can take advantage of EDC's Canadian Direct Investment Abroad (CDIA) financing solutions.If you are concerned about political instability, EDC also offers Political Risk Insurance which covers such risks as expropriation, conversion risk or political violence.
Business Benefits
- Business growth: Expand by buying or investing in new production facilities or in a complimentary company in a strategic market.
- International networks: Build partnerships by taking advantage of global and regional supply chains.
Coverage Details
Qualification Criteria
Cost
More information
Contact Us
To learn more about CDIA, complete our contact us form or call 1-866-283-2957 weekdays between 8 a.m. and 6 p.m. EST.
Coverage Details
EDC can provide
- direct financing to Canadian companies in support of their foreign investments;
- project financing to a foreign affiliate/subsidiary;
- working capital financing to a foreign affiliate/subsidiary;
- Accounts Receivable Insurance to cover an affiliate's foreign receivables;
- guarantees to a bank so that it can issue a bond without tying up a company’s working capital; and
- other financing solutions.
EDC’s CDIA solutions vary based on the size and nature of the investment, the market, the industry sector and the business strategy. EDC can consider a wide range of financing structures to suit the requirements of the investment transaction and provide a number of solutions to address the ongoing working capital needs of foreign affiliates.
Canadian companies considering new investments or foreign expansion should contact EDC early in their planning process to discuss financing and insurance options.
Qualification Criteria
EDC can support direct investments abroad:
- by any Canadian incorporated company with operations in Canada; or
- by any Canadian incorporated company without operations in Canada which has a legitimate Canadian head office directing the investment, and has a satisfactory level of Canadian executives and board members, including a predominantly Canadian management team.
The Canadian company must have:
- a direct investment (not a portfolio investment) outside of Canada;
- an active role in directing and/or managing that investment; and
- a minimum 10 per cent ownership in the affiliate/subsidiary.
To qualify for CDIA support, you must provide credit and transaction information, along with a copy of your business plan. In assessing your application, EDC considers both the credit benefits of the foreign investment and benefits to Canada.
Companies operating abroad should be aware that EDC is subject to a number of provisions and guidelines governing international trade.
Cost
EDC’s competitive, market-based pricing is arranged with the lender(s) involved in the financing.
More information
Call 1-866-283-2957, weekdays between 8 a.m. to 6 p.m. EST.
Complete our contact us form
