Ex-Im Bank to Leverage Industry Expertise to Expedite Export Financing for Business Aircraft and Helicopters
May 14, 2012
(Ex-Im Bank)
GENEVA, SWITZERLAND: U.S. manufacturers of business aircraft and helicopters
will benefit from a new process to assess credit risks and expedite
foreign-buyer financing from the Export-Import Bank of the United States (Ex-Im
Bank). Ex-Im Bank will work with qualified industry experts to perform due
diligence and credit analysis to facilitate the Bank’s support for U.S.
business-aircraft exports.
The announcement was made today by Ex-Im Bank Chairman and President Fred P.
Hochberg at the 12th annual European Business Aviation Convention and Exhibition
(EBACE), being held in Geneva, Switzerland, May 14-16.
“Business aircraft and helicopters are a vital part of the U.S. aerospace
industry that is one of the most competitive sectors of the economy and employs
thousands of Americans. Ex-Im Bank understands that business-aircraft
transactions require specialized knowledge and experience but has limited
resources to meet the growing demand for export financing in this industry. 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 U.S.
business-aircraft exports and the manufacturing jobs that they sustain,”
Chairman Hochberg said.
Ex-Im Bank is implementing the new process to address the increased demand for
export credits for business aircraft and helicopters arising from the growing
percentage of U.S.-manufactured aircraft that are sold to foreign buyers. The
process is intended to result in a more complete and comprehensive transaction
package being submitted to Ex-Im Bank. The more complete package will expedite
the application, 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 process will be available immediately through any advisor that has
demonstrated the requisite knowledge, experience and expertise with
business-aircraft financing. Ex-Im Bank developed the process following upon the
successful model of its $500 million loan facility approved in 2009 that
provided funds to assist Textron Inc. in financing exports of two of its
companies, Cessna Aircraft Company and Bell Helicopter Textron. The facility
enabled Textron’s Finance segment 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 of directors approved a second facility for
Textron’s Finance segment, 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.
In FY 2011, Ex-Im Bank authorized more than $12.6 billion in financing to
support the export of U.S.-manufactured aircraft of all types, including
approximately $90 million for 10 business aircraft and helicopters exports to
four countries – Brazil, Mexico, Panama and Switzerland.
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