Canada's trade finance agency to finance Tata Group

By Joel Rebello

MUMBAI: Export Development Canada ( EDC), that country's trade finance agency has signed an agreement with Tata Sons to finance up to $500 million to Tata companies every year, particularly in businesses which are linked to Canadian companies.

"EDC will underwrite loans under the agreement as opportunities arise for Canadian companies, particularly small-to medium-sized exporters (SMEs), within Tata companies' global supply chains," both the institutions said in a press release.

Tata companies have invested more than CAD 1.3 billion in Canadian operations over the past 5 years, including CAD 355 million last year alone.
The Tata Companies present in Canada include 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.

"Tata companies' worldwide operations already count more than 1,000 Canadian suppliers," the release said.

The agreement was signed by Madhu Kannan, member, group executive council, Tata Sons, and Benoit Daignault, president and CEO EDC.

"The financing is a reflection of Tata's importance to Canadian exporters," Daignault said in the release. "EDC's financing helping them deepen their roots here at home and create new opportunities for Canadian companies," he added.