Air Canada bailout buys time - but Canada Inc sells out to forces of protectionism | Centre for Asia Pacific Aviation - CAPA
EDC provides 150 million in financing for Air Canada
OTTAWA) – July 29, 2009 – Export Development Canada (EDC) today announced that it has provided $150 million towards a $600 million credit facility for Air Canada involving four other lenders, including the Government of Canada.
“EDC’s new domestic powers have allowed it to provide timely and critical financing to Air Canada, with our involvement supporting significant and tangible benefits to Canada,” said Eric Siegel, President and CEO.
The loan is provided on commercial terms and at market rates consistent with the risk profile of the transaction.
EDC’s support is complemented by that of Government of Canada, which has lent $100 million through its Canada Account. The other lenders include ACE Aviations Holdings Inc., General Electric Capital Markets and Aeroplan.
Canada Account is used when a transaction falls outside the scope of EDC's Corporate Account, usually due to a combination of risks, including the size of the transaction, market risks, country capacity, borrower risks or the financing conditions, but nevertheless is determined by the federal government to be in Canada's national interest.
EDC is Canada’s export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC’s knowledge and partnerships are used by more than 8,300 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining, is a recognized leader in financial reporting and economic analysis, and has been recognized as one of Canada’s Top 100 Employers for eight consecutive years.
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Media contact:
Phil Taylor
Export Development Canada
Tel: (613) 598-2904
Blackberry:
[email protected]
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