OTTAWA, Aug. 29, 2013 /CNW/ - Export Development Canada (EDC) today
signed a USD 250 million financing agreement with Hong Kong-based China
Gas Holdings (CGH), one of mainland China's largest natural gas
suppliers.
The financing agreement will facilitate CGH's planned procurement from
its long-standing Canadian supplier, B.C.- based IMW, a wholly-owned
subsidiary of Clean Energy Fuels Corporation.
EDC's Senior Vice-President and Global Head of Financing and
Investments, Benoit Daignault and Mr. Liu Ming Hui, Executive Chairman,
Managing Director and President of China Gas, took part in the signing
ceremony held at EDC's Ottawa headquarters.
Mr. Hui said that "We have enjoyed a beneficial collaboration with EDC
since 2009 and we are delighted to receive their support again. Apart
from our strong business performance, our good corporate governance and
environmental protection efforts have favorably impressed EDC. This
loan facility provides China Gas with more financial flexibility to
further expand our city gas project portfolio, as well as to forge
ahead with our compressed natural gas refueling station expansion
strategies as one of the Group's new growth drivers. We will continue
to explore new opportunities in order to drive the development of clean
energy in China."
China's 12th 5-year plan outlined a number of initiatives to reduce their dependency
on coal and oil, leading to burgeoning Chinese demand for Canadian
companies with cleaner technology expertise like IMW.
Intensifying urbanization in China is placing significant stress upon
its infrastructure overall, creating massive opportunities for Canadian
companies that can help them find ways to not only meet, but get ahead
of that demand curve.
The financing will also serve as a mechanism to introduce new Canadian
supply into CGH's operations overall. Forward-looking companies like
CGH want to structurally embed more cost-efficient, cleaner
technologies into their operations, which can be very capital
intensive. EDC's financing capacity is well-placed in the market and
can help put Canadian companies at the top of the potential supplier
list.
EDC provided CGH with USD 30 M in financing in 2009 to facilitate the
purchase of supply from IMW. As EDC and CGH grew their relationship
over the past 4 years, a number of Canadian companies were introduced
to them. The potential for Canadian supply into their operations is
the basis for the new, larger financing package.
EDC has established permanent representations in Beijing and Shanghai
and has been active in China since 1979, making it one of the first
export credit agencies to establish business ties to the market.
In 2012, EDC supported 586 companies and facilitated over CAD 7.6
billion of business in China, a key market of focus for the
corporation.
China is also a strategic priority for the Government of Canada. Two-way
trade between Canada and China surpassed CAD 70 billion in 2012, up
from CAD 53 billion in 2008. The primary sectors of trade between
Canada and China are electronics, pulp and paper, textiles and
minerals.
About China Gas Holdings
China Gas Holdings Limited is a natural gas services operator listed on
the main board of The Hong Kong Stock Exchange Limited. It engages
principally in the investment, operation and management of city gas
pipeline infrastructure, distribution of natural gas and LPG to
residential, commercial and industrial users, construction and
operation of oil stations and gas stations, and development and
application of natural gas and LPG related technologies in China.
About IMW
Since 1984, IMW has been a leading supplier of Compressed Natural Gas
(CNG) equipment for vehicle fuelling and industrial applications such
as bus / taxi fleets and gas-fired power generation plants. CNG fuelling
systems and products are the cornerstone of IMW's clean-technology
manufacturing operations. IMW was purchased by Clean Energy Fuels Corp.
(Nasdaq: CLNE) in 2010 and operates as a wholly-owned subsidiary
About EDC
EDC is Canada's export credit agency, offering innovative commercial
solutions to help Canadian exporters and investors expand their
international business. EDC's knowledge and partnerships are used by
more than 7,400 Canadian companies and their global customers in up
to 200 markets worldwide each year. EDC is financially self-sustaining
and a recognized leader in financial reporting and economic analysis.
SOURCE: Export Development Canada
