Scotiabank Mexico Signs Exclusive Guarantee Agreement with EDC for Mexican Market

(Canada NewsWire)

Export Development Canada (EDC) and Scotiabank Mexico today announced an agreement through which EDC will guarantee Scotiabank Mexico loans in Mexico to either importers of Canadian goods and services or subsidiaries of Canadian companies operating in Mexico. This is the first Guarantee Agreement that EDC has signed with a Financial Institution in Mexico.

“Scotiabank is extremely pleased to be exclusively partnering with EDC to assist companies in the importing of Canadians goods and services to Mexico and facilitating the establishment of Canadian subsidiaries in Mexico,” said Alberta G. Cefis, Executive Vice-President and Group Head, Global Transaction Banking, Scotiabank. “This new partnership will enable Scotiabank to provide customers in Canada and Mexico with end-to-end supply chain financing solutions.”

“EDC and Scotiabank’s interests in the Mexican market are very well aligned, and this agreement reflects our shared interest in doing more business there and growing the presence of Canadian companies in this vital market,” said Eric Siegel, President and CEO of EDC.

“EDC and Scotiabank have a long and strong relationship and this new exclusive partnership builds on our shared commitment to helping Canadian and Mexican companies involved in international trade,” said Nicole Reich de Polignac, President and CEO, Scotiabank Mexico. “This partnership with EDC is very exciting because it will help Canadian companies to enter Mexico and invest in this booming economy.”

Under the agreement, EDC will guarantee up to 75% of the loan amount, to a maximum of USD $5 million. EDC’s participation is predicated upon loans that support Canadian export contracts or facilitate Canadian capacity in Mexico. The agreement will provide for loans in U.S. dollars or in Mexican pesos.

Mexico is a key market for EDC, averaging CAD $2.3 billion in business volume since 2005, largely focussed on the extractive, transport, infrastructure, and information communication technology sectors. EDC has permanent representations in Mexico City and Monterrey that develop relationships with Mexican Companies, Canadian suppliers and Canadian subsidiaries operating in the country. In 2007 EDC served over 500 Canadian companies doing business with Mexico.

Through this exclusive partnership with EDC, Grupo Scotiabank seeks to increase its product offering and provide customers in Canada and Mexico with the best end-to-end supply chain financing solutions, designed to facilitate international trade and mitigate risk. Scotiabank Mexico serves 1.8 million customers in 635 branches throughout Mexico.