EDC to finance Tata to increase biz with Canadian cos

Export Development Canada (EDC) and Tata Sons today entered into an agreement for up to USD 500 million financing every year for Tata group companies.
Under the agreement, EDC will underwrite loans as opportunities arise for Canadian companies, particularly small-to medium-sized exporters (SMEs), within Tata companies' global supply chains, a joint release issued here said.
Tata companies have invested more than CAD 1.3 billion in Canadian operations over the past five years, CAD 355 million last year alone, with active consideration for new developments going forward.
The financing agreement was signed by Madhu Kannan, Member, Group Executive Council, Tata Sons, and Benoit Daignault, President and CEO of EDC.

Commenting on the agreement, Kannan said, "The Tata group has had a long standing and successful presence in Canada. EDC continues to be a very important partner for us and we are delighted to enter into this funding arrangement with them which would facilitate the expansion plans of Tata companies."
Among Tata companies present in Canada are Tata Global Beverages, Tata Steel, Tata Consultancy Services, Tata Chemicals, Tata Communications, Tata Technologies and Tata Interactive, with approximately 3,000 employees at various operations.

Their facilities include an IT development centre (Ontario), telecommunications facilities (Quebec and Ontario), iron ore mining (Quebec) and soda ash distribution centres (Quebec and New Brunswick).

Tata companies' worldwide operations already count more than 1,000 Canadian suppliers.
"The Tata group is a critical organisation within a key market for Canada - India -- and the financing is a reflection of Tata's importance to Canadian exporters," said Daignault.