Canadian Export Credit Agency Enters Swap

  • 10 Sep 2001
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Export Development Corp., a state-owned company that provides insurance, financing and guarantees to Canadian exporters, recently entered into a CAD500 million (USD300 million) cross-currency interest-rate swap on the back of a bond issue of the same size. Chad Buffel, portfolio manager, said the maturity on the swap is 10 years, matching the maturity on the bond. In the swap EDC pays a sub six-month U.S. dollar-LIBOR rate and receives a rate equal to the 5.75% coupon on the bond. EDC opted to borrow in Canadian dollars because a Canadian investor wanted paper denominated in that currency. It entered a swap to hedge the foreign exchange risk because 90% of its assets are in U.S. dollars. The move also allowed EDC to fund the deal at a price that was more attractive than borrowing in U.S. dollars. EDC is paying a floating rate as a way to match the floating assets with liabilities. The counterparty in the swap was an undisclosed Canadian investment bank. Buffel noted, however, that EDC only deals with counterparties with a rating above double A.

EDC is Canada's official export credit agency. It has CAD21 billion in assets. Buffel said it has used foreign exchange or interest-rate derivatives to hedge approximately 80% of the firm's assets.

  • 10 Sep 2001

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Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 13 Mar 2017
1 JPMorgan 94,925.33 384 8.39%
2 Citi 87,531.58 331 7.74%
3 Bank of America Merrill Lynch 84,341.49 288 7.46%
4 Barclays 75,288.19 241 6.66%
5 Goldman Sachs 68,504.71 208 6.06%

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Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 14 Mar 2017
1 Bank of America Merrill Lynch 10,650.87 23 11.13%
2 Deutsche Bank 8,169.49 17 8.53%
3 HSBC 6,243.46 23 6.52%
4 Citi 4,355.35 13 4.55%
5 SG Corporate & Investment Banking 4,273.37 17 4.46%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 28 Mar 2017
1 JPMorgan 6,305.34 22 10.84%
2 Deutsche Bank 4,468.97 23 7.68%
3 UBS 4,270.64 20 7.34%
4 Citi 3,833.33 28 6.59%
5 Goldman Sachs 3,788.75 20 6.51%