OTTAWA, ONTARIO--(Marketwired - Aug. 13, 2014) - Export Development Canada (EDC) today announced USD 11 M in financing for Mexico'sCinepolis Group (Cinepolis), the fourth largest movie theatre operator in the world and the largest in Latin America.
The financing, which is being provided as part of a larger facility loan for Cinepolis, will serve to strengthen the business relationship between Cinepolis and Canada's IMAX Corporation, a world leader in entertainment technology.
IMAX currently has 14 specialized theatres located in Cinepolis multiplexes, 13 in Latin America and one in India. Plans are in place between the two companies for 11 new theatres to be built by 2015 in various locations around the world, and discussions have already begun regarding additional theatres in the future.
"We've been more aggressive recently in the Latin American market, with triple the amount of signings in 2013 from 2012," said IMAX CEO Richard L. Gelfond. "We're pleased to see our efforts coming to fruition in our relationship with Cinepolis and we expect the region to provide further growth for us as the appetite for the IMAX Experience increases among developers, exhibitors and consumers."
With 837 theatres in 57 countries, IMAX has come a long way since making its name as a small group of experimental filmmakers at Montreal's EXPO '67. EDC has played an important role in that growth by providing financing and bonding products that helped the company through periods of financial need, and supported its expansion into foreign markets.
"IMAX is an iconic Canadian company, and we are happy to play a part in bringing their unique experience to new audiences," said Todd Winterhalt, EDC's Vice-President of International Business Development. "By participating in this syndicated loan we are establishing a financial relationship with Cinepolis to the benefit of IMAX, but we will also be able to leverage this relationship with Cinepolis to recommend Canadian companies for future contracts."
In the last five years Cinepolis has averaged a sales growth of over 20 per cent per year. It has capitalized on a growing movie market in Latin America, which saw box office revenues increase almost 80 per cent from 2009-2013.
"One of our success factors has been our focus on innovation and IMAX is an integral part of how we're delivering on this front," said Alejandro Ramirez, CEO of Cinepolis Worldwide. "IMAX gives us a competitive advantage that drives stronger performance at our multiplexes and we look forward to bringing the world's most immersive cinematic experience to more theatres across our network."
Mexico is a strategic market for Canada, as outlined in the Government's Global Market Action Plan, and is also a market of corporate priority for EDC. As such, EDC is looking to grow the amount of financing that it offers to Mexican companies, whether that financing is for general corporate purposes or project finance purposes.
Canadian companies looking to grow their business in Mexico can contact EDC at 1-800-295-2528.
EDC is Canada's export credit agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public- sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.
For more information about how EDC can help your company, visit www.edc.ca.
FOR FURTHER INFORMATION PLEASE CONTACT:
Phil TaylorExport Development Canada
Source: Export Development Canada