EDC extends US$50M in financing to Navistar’s Mexico division
Finance deal will support the purchase of components produced by Canadian suppliers
OTTAWA—Export Development Canada (EDC) has inked a US$50-million financing deal with Navistar Financial Mexico (NFCx), the financial arm of Navistar Mexico, S. de R.L. de C.V. (Navimex), a wholly owned subsidiary of Navistar International Corp. (Navistar) in Mexico.
Navimex is a leading manufacturer of commercial trucks and buses sold in Latin America, Canada, and the U.S., with one of its principal manufacturing facilities in Monterrey, Mexico.
Navimex says the financing provides flexibility to support the purchase of components produced by Canadian suppliers used in the manufacturing of International trucks and buses in Mexico.
EDC provides financing for small Canadian companies that have business outside of Canada.
EDC worked with Navimex’s financial partners to provide the financing, which will be used to fund new loans and leases for the sale of trucks assembled with Canadian components.
“Navistar already has a healthy Canadian supply, but there are imminent opportunities for more Canadian companies as they ramp up production levels within their Mexican facilities,” said Todd Winterhalt, vice-president of international business development for EDC.
Canadian companies with a local manufacturing presence in Mexico and with experience supplying parts to the automotive or heavy vehicle industry are in high demand.
EDC creates these opportunities by targeting companies whose procurement needs match up with existing Canadian expertise.
“EDC’s financing for foreign buyers can pay important dividends to Canadian companies,” added Winterhalt. “Since we began working with Navistar more than 13 years ago, we’ve seen their Canadian supply increase by more than 400 per cent. That, by any standard, is a good return on investment for Canada.”
Since 2003, EDC has made about $25 billion in loans to more than 200 foreign companies, leading to more than $38 billion in business with about 4,000 Canadian companies.