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Ex-Im Bank:
Export Finance
JANUARY 7, 2011
WEST AFRICA’S POTENTIAL
Who We Are — What We Do
Mission: Support US exports in order to create and
sustain US jobs
Ex-Im Bank is an 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.)
Foreign Export Credit Agencies
We have foreign competitors that have similar support
EDC Canada
ECGD UK
Coface France
EulerHermes Germany
JBIC Japan
Sace Italy
KEIC, Keximbank S. Korea
OeKB Austria
Efic Australia
How we benefit International Buyers
Improved Cash Flow
– Supplemental Liquidity
Lower Interest Rates
– Loan Guarantees lessen the interest rate commercial
lenders require
Extended Terms
– Longer payback periods than typically available in the
market
Establish Credit Record
– Through carefully designed repayment structure
supported by local banks and sovereign guarantees
There must be three elements to an Ex-Im Bank
transaction … the three ―C’s‖
√ Country: We must be open in the
buyer’s country.
√ Content: The U.S. Export must have
significant U.S. content.
√ Credit: The transaction must have a
reasonable assurance of repayment.
√ Country: Where is Ex-Im Bank Available in SSA?
• Short-Term (<360 days)
- 43 countries
• Medium-Term (up to 5/7 years)
- 29 countries
• Long-Term (up to 10/12/15/18 years)
- 21 countries
• Possible Public Sector Exceptions:
- IMF programs in around 30 countries
√ Go to www.exim.gov to check our Country Limitation
Schedule for availability in your country of interest
√ Content: We have a ―made in the USA‖ Content Policy
• Export must be exported from the United States
• 51% U.S. content for short-term transactions
• up to 85% U.S. content for medium/long-term
transactions (OECD driven)
• Services must be performed by US-based
personnel, either in the US or in the ―host‖ country
√ Check with the US exporter to see if they manufacture
and export from the USA
√ Credit: Ex-Im Bank requires reasonable assurance of
repayment on every transaction
Public Sector Transactions:
– Ex-Im Bank will most likely require a Ministry of
Finance Guarantee.
Private Sector Transactions:
– For transactions over a $500,000, Ex-Im Bank
requires three years of audited financial statements.
– The buyer must meet a number of qualitative and
quantitative criteria codified in our credit standards.
– If credit standards cannot be met, Ex-Im Bank would
need other credit enhancements such as a local bank
guarantee.
√ Check www.exim.gov/tools/credit_stds.cfm to see if
the buyer meets our credit standards
Primary Financing Products
Term
Solutions
• Export Credit Insurance
Short-Term Financing
• Working Capital Guarantees
• Export Credit Insurance
• Commercial Loan Guarantees
Medium & Long-Term
Financing • Direct Loans
• Project/Structured Finance
• Transportation (Aircraft)
Ex-Im Bank short-term export credit insurance structure
Commercial
Contract
Open Account Terms Exporter
Buyer With Exposure Fee
Repayment
Other Short-Term Policies:
Ex-Im Bank Ex-Im
Single-Buyer Insurance Bank
(exporter) Application Insurance
and
Multi-Buyer Exposure
(exporter) Fee
Bank Letter of Credit
(bank) Ex-Im Bank
Financial Institution Buyer Credit
(bank)
Short-term Export Credit Insurance Success Story: South
Africa
Hartswater, Northern Cape:
Ex-Im Bank approved a request from Delta
Technology Corporation of Houston, Texas, to
support the sale of two electronic color peanut sorters
to P-Farms Agente BK of Hartswater, South Africa in
the amount of $151,063. With the use of Ex-Im
Bank’s single sale, multiple shipment
insurance policy, the exporter, Delta Technology
Corp., was able to directly finance this transaction
over a two year period.
Short-term Export Credit Insurance Success Story: West
Africa
Ghana and Nigeria:
ABRO Industries of South Bend, Indiana used an Ex-
Im Bank SBCL (Special Buyer Credit Limit) policy to
export $11.5 million of automotive and industrial
supply products and fire equipment to Coscharis
Motors in Nigeria and Ghana.
Medium and Long-Term Guaranteed Loan Structure
Commercial
Contract(s)
Borrower/ U.S.
Buyer Exporter
Credit
Enhancements Repayment
(If necessary)
Loan Booked
Principal
Loan
+
Disbursement
Interest Rate
+
Exposure
Fee
Guarantee
Lending
Loan
Agreement Ex-Im Bank
Bank Exposure Fee
Ex-Im Bank may need credit enhancements to find
reasonable assurance of repayment
Credit Enhancements may include one or more of
the following:
– Ministry of Finance Guarantee (public sector
transactions)
– Bank Guarantees (public or private sector
transactions)
We can also consider a mixture of the following
on a case-by-case basis:
▫ Personal Guarantees by Owners
▫ Quarterly Payments
▫ First Priority Security Interest in the Asset
▫ Subordination Agreements
▫ High Down-Payment by Buyer
▫ Risk Retention by Exporter or Lending Bank
▫ Other credit enhancements
Ex-Im Bank’s $1 billion Nigerian Bank Facility includes 12
banks
Access Bank www.accessbankplc.com
Bank of Industry www.boinigeria.com
Diamond Bank www.diamondbank.com
Ecobank Nigeria www.ecobank.com
Fidelity Bank www.fidelitybankplc.com
First Bank www.firstbanknigeria.com
First City Monument Bank www.firstcitygroup.com
Guaranty Trust Bank www.gtbank.com
Skye Bank www.skyebankng.com
Stanbic-IBTC www.ibtc.com
United Bank for Africa www.ubagroup.com
Zenith Bank www.zenithbank.com
Medium/Long-Term Loan Guarantee Success Story:
Uganda
Kampala, Uganda:
Biyinzika Enterprises bought $322,465 worth of
poultry production equipment from Chick Master
Incubator International and Insta Pro International.
RZB Finance provided the medium term financing
against Ex-Im Bank’s guarantee.
Medium/Long-Term Loan Guarantee Success Story:
Zambia
Lusaka, Zambia:
Jacaranda Plant and Machinery Hire Company of
Zambia imported an STX 480 horsepower tractor
supplied by CNH America LLC of Racine,
Wisconsin. Ex-Im Bank guaranteed a medium-term
loan by American Trade and Finance (ATRAFIN) for
the $285,332 transaction.
Medium/Long-Term Loan Guarantee Success Story:
Nigeria
Lagos State:
Ex-Im Bank guaranteed a long-term loan that
involved over sixteen US suppliers including St. Louis,
Missouri’s Roeslein. The $19.6 million transaction
allowed the suppliers to export an aluminum can
manufacturing facility to GZ Industries. Fidelity
Bank, Nigeria, provided a local bank guarantee to
HSBC’s loan.
Ex-Im Bank’s other products
1. Working Capital Loan Guarantees
- pre-export finance for US companies only
2. Project and Structured Finance
- Large, highly complex transactions where
repayment is partly or all from future cash-
flows
3. Transportation and Aircraft
- large scale locomotive and commercial
aircraft asset based finance
4. Direct Loans
- Rare, as Ex-Im Bank does not compete with
the private sector
Typical Project Finance Structure
Host Government
Legal /regulatory framework & evident support
Input SPV Off Taker
Contracts Made up of project
sponsors that
Provides revenue
stream to project.
Guaranteed supply of provide equity. Must be
inputs to project SPV is the creditworthy.
borrower.
EPC O&M
Contract with
Likely source of U.S. capable firm
content. Must show extends beyond
technical experience. repayment term.
Ex-Im Bank question checklist for most transactions
Is Ex-Im Bank open in the Who is the buyer, exporter,
buyer’s country? and, if necessary, the lending
bank?
Is the transaction with a How much, in dollar terms, is
private or public sector the US export contract?
buyer?
Is the Export made in the Has a commercial contract
USA and exported from the been signed?
USA?
Ex-Im Bank checklist
If the buyer is private, do they If the buyer is public sector,
meet our credit standards? Do what documentation does one
they have financial statements have from the Ministry of
and/or bank and trade Finance? Is that country’s
references? Have they been government under an IMF
operating profitably for several program?
years?
What existing lines of credit Has the buyer and/or exporter
does the buyer have and with been involved in transactions of
whom? Are they performing? similar size, scope and scale
before?
What is the buyer’s management experience?
Additional Project and Structured finance questions
Who are the sponsors? Who is the EPC What are the terms of
contractor? The O&M the supplier
contractor? agreements?
What are the terms of What experience do all Will the project make
the off-take contract the parties have in economic sense when
and is it in a hard projects of this similar all the fees for
currency? Is the off- size, scope and scale? arranging financing
taker creditworthy? are considered? (over
$25 million?)
Who is the financial What feasibility, What is the debt to
advisor? environmental impact equity ratio? What
and engineering other banks are
studies have been providing debt? Who
done? is providing the
equity?
Application for Short-Term Insurance
The following are the required steps to obtain an Export Credit
Insurance policy:
1. U.S. exporter and international buyer negotiate a sales
contract;
2. International buyer supplies the U.S. exporter with
financial information, as required by Ex-Im Bank’s credit
standards.
3. U.S. exporter submits insurance application to Ex-Im
Bank, which includes requisite financial information
received from the buyer.
Application for Medium/Long-Term loan guarantees
There are three steps to approaching Ex-Im Bank:
1. U.S. exporter and international buyer negotiate a sales contract;
2. International buyer and/or U.S. exporter identify a financing institution
to provide the loan (commonly a U.S. bank, but foreign banks willing to
lend U.S. dollars can also apply);
3. Lending institution submits final application to Ex-Im Bank for review
and approval.
Letter of Interest (Eligible Applicants: Anyone)
▪ To initiate financing discussions with lending institutions or to
complement financing proposals for competitive bids, U.S exporters and
importers can obtain an Ex-Im Bank Letter of Interest (LI) to assist in
negotiations for medium- and long-term transactions.
▪ The LI indicates the Bank's willingness to consider a financing offer if
sale is completed. An LI can be issued within seven days of a request for
financing and remains in effect for six months.
What does it cost? Find out online at www.exim.gov
Short-Term Export
Credit Insurance
Exposure Fees
Medium and Long-Term
Loan Guarantee
Exposure Fees
How long does it take?
Answer: It depends on the dollar-size of the
application, the product, and the quality of the
transaction and application.
Short-Term Insurance:
– Several days to 1.5 months
Medium to Long-term Loan Guarantees:
– 1 month to 1 year
Global Business Development
Joe Ringer, Senior Export Finance
Manager, Email: joseph.ringer@exim.gov
Tel: 281-721-0467 cell 713-301-1749
Rick Angiuoni, Regional Director – Africa
▪ Email: Rick.Angiuoni@exim.gov
▪ Tel: 202-565-3903 / Fax: 202-565-3839
Benjamin Todd, Business Development
Officer – Africa
▪ Email: ben.todd@exim.gov
▪ Tel: 202-565-3916 / Fax: 202-565-3839
