EDC announces US$215 million in financing for Idea Cellular

Export Development Canada (EDC) has announced US$215 million in financing for Idea Cellular companies.

EDC provided the loan under a pre-existing 500M uncommitted financing arrangement for the Aditya Birla Group. Under this arrangement, EDC provides financing support to the broader group companies under the ABG banner for transactions that are of strategic importance to ABG and EDC. Idea Cellular companies will use the financing to help diversify its funding sources and enhance the maturity profile of its long-term debt in a cost-effective manner.

“EDC has been a lender to Idea Cellular in multiple consortium transactions since 2011 and the relationship is now being expanded with EDC as the sole lender for this new financing,” says Akshaya Moondra, Whole Time Director and CFO, Idea Cellular Limited. “This, as well as being introduced to a variety of products and services originating from Canada, has made EDC a valuable partner to our business. We look forward to growing this relationship in the coming years.”

“The relationships we build with our Indian customers go beyond financing. EDC helps its international customers cut costs and grow their business by introducing them to innovative Canadian suppliers, which is a win-win for Indian corporate,” said Nathan Nelson, EDC’s Chief Representative in India. “As a telecommunications leader in India, Idea Cellular is one of the most sought-after buyers for leading-edge Canadian ICT companies. The areas of focus for EDC and Idea Cellular are a natural fit.”

Since 2014, EDC has been actively engaged with Idea to facilitate introductions to Canadian companies.

In the past five years, EDC helped facilitate over CAD 10 billion in business between Indian and Canadian companies, through the entire range of its financial solutions.

EDC is looking to grow the amount of financing that it offers to Indian companies for their capital expenditures, whether the financing be for general corporate purposes or project