Transcript National Power Transmission Corporation (NPT)

The Russian Union of Industrialists
and Entrepreneurs
July 16, 2012
Introduction to Export-Import Bank of the
United States presented by
Raymond Ellis, Vice President
Global Business Development Division
Export-Import Bank of the United States
Mission
Ex-Im Bank supports US exports in order to create and
sustain US jobs
Organization
Ex-Im Bank is a self-sustaining, independent agency of
the United States government
 Established in 1934
 Headquartered in Washington, DC
 5 regional business development offices, plus 4
satellite locations (Dallas, San Diego, San Francisco
and Washington D.C.)
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Export-Import Bank of the United States
Activities
 Ex-Im Bank provides financing services that fill gaps
in standard commercial trade financing
• loan guarantees and direct loans
• export credit insurance
 Assumes credit and country risks private sector unable
or unwilling to accept without support
 Ex-Im Bank has no minimum or maximum
transaction size amounts and no country limits
 Must find a reasonable assurance of repayment
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Ex-Im Bank History
History
 Since its founding in 1934 Ex-Im has supported
more than $500 Billion in U.S. exports
 In fiscal year 2011 Ex-Im authorized $32.4 Billion
in support of U.S. exports as compared to $24.5
Billion in fiscal year 2010
 Ex-Im Bank financing has supported a variety of
key industry sectors
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Note
Aviation and Avionics
Manufacturing Equipment
Heavy Equipment
Oil and Gas Exploration/Development
Energy/Power Generation/Renewables
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The Export-Import Bank of the U.S. in Russia
The Bank was originally founded in 1934 to support U.S. exports
to Russia – First transaction done in March 1973 covering
sale of submersible pumps valued at $11.6 million
Current Exposure - $219.1 million
Authorizations FY2012
$208.3 mln
Sectors –
FY2011
$234.8 mln
FY2010
$98.9 mln
Commercial jet aircraft
Mining
Agricultural equipment
Construction equipment
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Ex-Im Bank Programs
Types of Ex-Im Bank Financing Support
 Programs typically used by U.S. exporters and
their banks:
• Working Capital Guarantees
• Short- & Medium-Term Credit Insurance
 Programs typically used by importing buyers
and their banks:
• Medium- & Long-Term Loan Guarantees and
Direct Loans
• Structured & Project Finance
Note
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Export Finance Solutions
MT - Insurance and Guarantees
 For capital equipment and related services in amounts
< $10 million and repayment terms of < 5 years
(exceptionally 7 years)
 Loans and Equipment Leases (financial leases)
 Buyer Credit Standards
• Minimum 3 year history
• Reliable financial statements (audited if credit > $1 million)
• Buyer must meet certain financial ratios
See http://www.exim.gov/pub/pdf/ebd-m-39.pdf
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Export Finance Solutions
LT - Loan Guarantees & Direct Loans
 Amounts > $10 million and 7 - 18 year repayment terms
 Generally, large-ticket items like commercial jet aircraft,
corporate credits > $50 million and limited recourse project
finance
 Additional Requirements
• technical information in support of transaction summary
• Engineering and Environmental review and documentation
• detailed “Acquisition List”
• compliance MARAD shipping policy
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MT and LT Guarantee Programs
General Requirements
 Contract Amount
• No minimum or maximum size limit
 Cash Payment
• 15% cash payment to exporter required - can be
financed separately
 US Content
• Ex-Im covers the lesser of 85% of the US Contract
amount, or 100% of the U.S.- sourced equipment
and services included in the contract
 Military
• Bank is prohibited from financing military
equipment and services
See
http://www.exim.gov/products/policies/index.cfm
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MT and LT Guarantee Programs
General Requirements (cont.)
 Local Costs
• Ex-Im Bank can support up to 30% of the US
contract value in local costs
• Substantial increase to financed amount
 Services
• Services must be performed by US-based
personnel, either in the US or the host country
 Shipping via Ocean Freight
• U.S. flag vessels required with transactions of
(i) > $20 million, or (ii) with terms > 7 years
See
http://www.exim.gov/products/policies/index.cfm
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Guarantee Eligibility and Coverage
Standard Finance Model
U.S. Supply Contract
$100,000,000
U.S. Content
Eligible Foreign Content
80,000,000
15,000,000
$ 95,000,000
Net Contract Price*
Less: 15% Cash Payment:
Financed Portion
Plus: Eligible Local Costs (30%)
$ 80,000,000
12,000,000
$ 68,000,000
24,000,000
Total Financed Amount
$ 92,000,000
* The lesser of i) 85% of the value of all eligible goods and services in the U.S. supply
contract, or ii) 100% of the U.S. content in all eligible goods and services
** Subject to change – see Exposure Fee Calculator
See
http://www.exim.gov/news/lcfinance/illustrationbankstructure.cfm
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All-in Cost of Financing for Guaranteed Loan Example
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Total Loan Amount
$100,000,000
Total Term
12 yrs
Ex-im Exposure Fee*
6.21%*
Guaranteed Lender Fees
$100,000
Ex-Im Commitment Fee
0.1250%
Base Rate (6-month Libor) **
0.73%
Spread over Base Rate
1.000%
All-in-Cost to Borrower
2.792%
* For category 3 (Russia) with 2 year construction period and 10 year repayment term
** Libor quote as of 7/2/2012
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Environmental Exports Program-EEP
Support for environmentally-beneficial exports:
▪ Renewable energy: photovoltaic, wind, hybrid,
biomass, fuel cells, waste to energy, hydroelectric,
coal gasification and geothermal
▪ Wastewater, sewage, and waste treatment projects,
drinking water treatment
▪ Maximum repayment term allowable 18 years
▪ Automatic eligibility for up to 30% local cost cover
▪ Automatic eligibility for CIDC
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For More Information
Ex-Im Bank Contacts:
Global Business Development
+1-202-565-3713
Raymond J. Ellis, Vice President
[email protected]
James S. Lewis, Sr. BDO - Asia
[email protected]
www.exim.gov
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