Tata can count on up to US$500 million in annual financing from EDC

Tata can count on up to US$500 million in annual financing from EDC

MONTREAL — Canada’s lead export funding agency will provide Tata companies with up to US$500 million a year to support the Indian conglomerate’s expansion and growth in Canada.

Export Development Canada says it will underwrite loans primarily to help small- to medium-sized companies within Tata’s global network. The agreement can be renewed annually.

Tata has invested more than $1.3 billion in Canadian operations over the past five years, including $355 million in 2014.

It operates several Canadian divisions in the beverage, steel, consulting, chemicals, communications, technologies and interactive sectors that employ about 3,000 workers.

Tata’s global operations also include more than 1,000 Canadian suppliers.

EDC chief executive Benoit Daignault said the Tata group is a critical organization in India, which is a key market for Canada.

“The financing is a reflection of Tata’s importance to Canadian exporters,” he said in a news release, adding that the financing also helps to deepen Tata’s Canadian roots and create opportunities for Canadian companies.

Madhu Kannan, a member of Tata’s group executive council, said the agreement will facilitate Tata’s expansion plans.

However, no details of those projects or potential impact on employment were disclosed.

While the agreement provides a framework for EDC financing, the Crown corporation must individually approve each transaction.

Founded in 1868, the Tata group comprises more than 100 independent operating companies in more than 100 countries around the world. It has nearly $109 billion of annual revenues and employs more than 600,000 people.

Ross Marowits, The Canadian Press

Categories: International, National

About Author

Write a Comment

Only registered users can comment.