Export Development Canada (EDC), Canada's leading financier and insurer of Canadian exporting companies, announced USD 500 million in financing for Reliance Industries (RIL). The transaction is among the largest financing packages that EDC has ever extended in Asia.
 
''We have been partnering with a wide section of Canadian suppliers for materials, equipment and services across our hydrocarbon businesses over the last 4-5 years and we are also engaging with them for our telecom business rollout,'' said Srikanth Venkatachari, Reliance's joint chief financial officer. ''We have more than a decade-long relationship with EDC, and this landmark deal will provide further impetus to foster trade between RIL and Canadian companies over the coming years.''
 
EDC provided the financing in response to the increasing business that RIL has been undertaking with Canadian companies since 2004, when EDC first became one of their financiers. The new financing package helps diversify RIL's funding sources and extends the maturity profile of its long- term debt in a cost effective manner.
 
''RIL is a global leader in many sectors that match up well with Canadian industrial expertise, creating a natural partnership that benefits both of our priority interests,'' said Rajesh Sharma, EDC's senior vice-president and global group head, business development.
 
''A strong relationship with EDC helps the RIL Group benefit from a global source of mature and dependable financing in a capital-constrained global economy,'' added Sharma. ''In turn, EDC introduces Canadian companies to RIL that not only meet their specific supply chain needs, but that can help them grow their global business. Everybody wins in this deal.''
 
EDC has been actively engaged with RIL for making introductions to Canadian capabilities.
 
Shares of the company gained Rs 15.85, or 1.68%, to trade at Rs 957. The total volume of shares traded was 367,708 at the BSE (2.12 p.m., Wednesday).