EDC loan helps finances $1.2B Bombardier rail contract in SAfrica
US$450-million loan will help rail operator Transnet to fund a purchase of rail equipment from the Quebec-based manufacturer.
Export Development Canada (EDC)
OTTAWA — Export Development Canada is providing South Africa’s national rail operator with a US$450-million loan to finance a major purchase of rail equipment from Quebec-based Bombardier.
The rail operator, Transnet, recently awarded a US$1.2-billion contract to Bombardier Transportation South Africa Ltd. for the delivery of 240 TRAXX dual-voltage locomotives.
The EDC, a Crown corporation that helps Canadian companies develop export opportunities, said the Transnet the deal with Bombardier helps to “showcase Canadian capability to build and deliver on landmark projects worldwide.”
“South Africa offers significant opportunities for Canadian companies, especially those in the business of infrastructure,” said the EDC’s Carl Burlock, senior vice-president, financing and investments.
“By supporting Canadian foreign investment in South Africa with this level of financing, EDC is demonstrating its willingness to back Canadian companies that want to do business in the area.”
It noted that South Africa has been identified by the federal government as a strategic market for Canada and is also considered a priority by the EDC, which expects to have permanent representation in Johannesburg by this summer.
© 2015 The Canadian Press