US Export-Import Bank streamlines lending to boost aircraft exports
2012 05 20
- Details
IN a move to boost the overseas sales of US-made business aircraft and helicopters, the US Export-Import Bank has announced a new process to assess credit risks and expedite foreign buyer financing, reports American Shipper.
"Ex-Im Bank understands that business-aircraft transactions require specialised knowledge and experience but has limited resources to meet the growing demand for export financing in this industry," said chairman Fred Hochberg in a statement.
"By leveraging private-sector expertise to assist and support our evaluation of these credits, we will be able to expand Ex-Im Bank's support for US business-aircraft exports and the manufacturing jobs that they sustain."
The bank will expedite these applications, the approval and closing process for foreign borrowers of Ex-Im-supported financing in business aircraft transactions. Using qualified advisors is also expected to provide enhanced credit structures, resulting in additional credit protections for Ex-Im Bank.
"The process is designed to benefit manufacturers that do not have a captive financing company, but which can now designate one or more advisors to work with their foreign buyers," the bank said.
Ex-Im Bank said it developed the process following on the successful model of its US$500 million loan facility approved in 2009 that provided funds to assist Textron Inc in financing exports of two of its companies, Cessna Aircraft and Bell Helicopter Textron. The loan allowed Textron to provide competitive terms and interest rates to finance the export of more than 100 Cessna aircraft exports and six Bell helicopters.
Last week, Ex-Im Bank's board approved a second facility for Textron, providing a guarantee of a $350 million loan from PNC Bank to a Textron subsidiary to finance the export of additional Cessna aircraft and Bell helicopters. The repayment term is 12 years.
"We anticipate that this facility will add to the success of the first such financing for Textron, which has helped to support hundreds of manufacturing jobs in Kansas, Georgia and Texas," Mr Hochberg said.
In fiscal year 2011, Ex-Im Bank authorised more than $12.6 billion in financing to support the export of US-manufactured aircraft of all types, including about $90 million for 10 business aircraft and helicopters exports to four countries - Brazil, Mexico, Panama and Switzerland.
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