The loan, which will be funded in South African Rand, will partially finance a USD 1.2 B contract that Transnet recently awarded to Bombardier Transportation South Africa (Pty) Limited (BTSA), for the delivery of 240 TRAXX dual voltage locomotives.
"We are emboldened by the confidence that EDC and other funders throughout the world and South Africa are showing in Transnet," said Mr. Brian Molefe, Group Chief Executive, Transnet SOC Ltd. "Broadly, the agreement is in line with our funding strategy, especially our focus on diversifying sources of funding and raising debt cost effectively. Crucially, the agreement confirms the attractiveness, commercial viability and bankability of Transnet and its projects in an unequivocal and definitive manner. Equally importantly, this is a massive thumbs-up for our country – and that can only be a good thing."
EDC is a mature global financier with 70 years of experience in international finance. EDC can provide commercial financing options to companies that have, or are open to considering, business with Canadian companies.
"Large infrastructure projects like this benefit greatly from experienced and reliable global lenders, and EDC is ready to bring its financial capacity to South Africa's infrastructure players that have business with Canadian companies," said Carl Burlock , Senior Vice-President, Financing and Investments, EDC.
EDC announced plans last year to open a permanent representation in Johannesburg in 2015, and are currently eyeing a summer opening. The Johannesburg representation will serve the greater Sub-Saharan region.
"South Africa and the greater Sub-Saharan region are priority markets for EDC," added Burlock. "We are actively looking to become financing partners to South African companies and helping them grow, from small deals to large-scale financing."
BTSA is a 74 per cent owned subsidiary of Bombardier Transportation GmbH, which in turn is wholly-owned by Canada's Bombardier Inc. The balance of BTSA's ownership is made up of South African investors.
About EDC
EDC is Canada's trade finance agency, providing financial services for companies that buy from Canadian companies, directly or through their corporate value chains. EDC's financing can be used for capex and/or project finance requirements, either through bilateral or syndicated corporate facilities. Operating on commercial principles, EDC has a partnership-preferred philosophy to collaborate with private-sector financial institutions to share risk and create greater capacity for Canadian trade transactions.
Source: Sapa
