Export Development Canada has signed a US$30 million line of credit with Hong Kong's China Gas Holdings Ltd., its first commercial financing with a Chinese buyer of Canadian exports.
The line of credit over five years from the export credit agency will benefit Chilliwack manufacturer IMW Industries Ltd., from whom China Gas will buy compressed natural gas (CNG) equipment to build a network of natural gas fuelling stations for buses and taxis.
China Gas plans to build at least 120 CNG refuelling stations within three years to capitalize on explosive growth in the new industry, said Minghui Liu, the company's managing director.
China Gas, which owns 121 natural gas projects in China, including exclusive piped gas development rights in 110 cities and regions and eight natural gas pipeline transmission projects, chose IMW as its preferred strategic equipment supplier in April.
IMW supplies equipment for CNG vehicle fuelling stations around the world.
"This transaction is a successful example of how Canadian companies can, with EDC's support, provide world-class technology around the globe," said Brad Miller, IMW's president.
Stephen Poloz, a senior EDC vice-president, said the agency's deal with China Gas not only provided a customer for a Canadian exporter, but also helped to build links in China for Canadian supply and expertise in the energy sector.
"This deal represents the first commercial line of credit EDC has arranged for a Chinese buyer, which will help to expand EDC's presence in this key market."