EDC facilitates integrative trade by providing investment financing in China for the first time

OTTAWA , February 23, 2006 , Export Development Canada (EDC) announced today the first advance from a USD 10.5 million letter of offer for debt financing for Hanfeng Evergreen of Toronto in partnership with the Bank of China (Canada) (BOCC). The transaction marks the first time that EDC has provided financing for Canadian direct investment in China, and is an example of the growing trend towards globalizing operations.

The financing will be used to complete Hanfeng's fertilizer plant in Jiangyan, Jiangsu Province, China. Hanfeng began construction of the sulfur coated urea (SCU) plant in April 2005 and is scheduled for completion in the first quarter of 2006. The plant uses proprietary technology licensed from Brantford, Ontario based Nu-Gro Corporation. The plant?s annual capacity is expected to be 100,000 tonnes of SCU, a controlled-release nitrogen fertilizer for the Chinese market.

EDC is pleased to provide financing in support of Hanfeng Evergreen's plant operations in Jiangyan, which marks an evolution of our commercial solutions to facilitate integrative trade", said Norman Low, Vice-President of Information Technologies and Energy, Infrastructure and Services for Export Development Canada. "As more Canadian exporters and investors are looking at global supply chains in various markets including China, EDC is responding to their needs with innovative commercial solutions such as this transaction.

EDC is developing more innovative products and services related to Canadian direct investment abroad and equity investments in order to assist companies in establishing global supply and distribution chains. EDC's approach recognizes the need to help Canadian companies successfully compete with foreign companies in Canada as well as abroad.

About Hanfeng Evergreen
Hanfeng is a leader in China's growing market for urban greening and high value agricultural products and services. Headquartered in Toronto, Canada and with operations in Dalian, Shanghai and Beijing, China, Hanfeng has its own production facilities in China and also imports greening products sourced from leading North American and European suppliers of fertilizers and horticultural products.

About Bank of China (Canada)
Established in 1912, Bank of China is the oldest bank in China, and has played an important role in promoting China's economic and social progress through its active involvement in the country's international trade and financial activities. Since 1992, the bank has been awarded "The Best Bank in China" nine times by Euromoney Magazine, most recently in 2002. The Bank of China has been included in the Fortune Global 500 for 13 consecutive years, and is the first and only Chinese bank that has presence in all major continents. The bank offers financial services through its global network of over 560 overseas offices in 25 countries and regions.

Export Development Canada (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 7000 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and is a recognized leader in financial reporting, economic analysis and human resource management.

Source: Export Development Canada.