Citi Commercial Bank Approves Nearly $1 Million To Finance Texas Small-Business Exports Under Ex-Im Bank's Medium-Term Delegated Authority Program
June 20, 2012
(Ex-Im Bank)
WASHINGTON, D.C.: The Export-Import Bank of the
United States (Ex-Im Bank) today announced that
Citi Commercial Bank has approved its first
transaction under Ex-Im Bank's Medium-Term
Delegated Authority Program (MTDA), an
initiative to expedite export financing for
U.S. small businesses.
Citi Commercial Bank has authorized an Ex-Im
Bank-guaranteed loan of approximately $970,000
to Exinsa S.A. in Cancún, Mexico, to purchase a
TT2550 chain trencher from Trench-Tech
International Inc., a small-business
manufacturer in Roanoke, Texas. The chain
trencher (a type of equipment that can cut
through very hard ground) will be used in the
Mexican buyer's construction business. The
buyer is a repeat customer of the U.S.
exporter.
Approved lenders under Ex-Im Bank's MTDA
Program can authorize Ex-Im Bank's guarantees
to support medium-term commercial loans for
foreign buyers of U.S. capital goods such as
machinery and equipment. The program is
designed to reduce transaction turnaround time
and provide additional support for U.S.
small-business exports.
"Ex-Im Bank's Medium-Term Delegated Authority
Program is a vehicle to increase exporting by
U.S. small and medium-sized businesses, one of
the main goals of President Obama's National
Export Initiative. Ex-Im Bank is partnering
with commercial lenders to ensure that foreign
buyers have ready access to financing for their
purchases of U.S. goods and services. The
exports supported through this program are
helping small businesses maintain American
jobs," said Ex-Im Bank Chairman Fred P.
Hochberg.
"One of Citi Commercial Bank's greatest
strengths is our capacity to leverage Citi's
unequaled global footprint to meet the
ever-growing demand for international services
from our U.S. clients. We are thrilled to
partner with Ex-Im Bank and capitalize on our
strengths to help finance a transaction that
will generate investment for a thriving U.S.
business and create new jobs here and abroad,"
said Citi Commercial Bank Product Sales
Director Rajiv P. Goswami.
"The new MTDA Ex-Im program offered through
Citi Commercial Bank enabled us to complete a
sales transaction with Exinsa S.A. de C.V.,
located in Cancún, Mexico. Without this new
program, we most likely would not have been
able to complete this transaction," said Jerry
F. Gilbert, president of Trench-Tech
International Inc.
Under the program, approved lenders have
delegated authority to underwrite and authorize
Ex-Im Bank-guaranteed medium-term transactions
without prior Ex-Im Bank review and approval.
In each transaction, the lender is required to
share the credit risk by retaining 10 percent
of the commercial risk but also retains 10
percent of the Ex-Im Bank exposure fee.
Transactions involving small-business exporters
or small-business suppliers are eligible for
increased Ex-Im Bank risk coverage, and for
these transactions, the lender's
commercial-risk retention is reduced to 8
percent.
Approved lenders have the thorough knowledge of
Ex-Im Bank policies and credit standards to
expedite approvals and help U.S. exporters
offer timely financing to their foreign
customers. Loans approved under the program may
have repayment terms of two to five years.
Transactions requiring a higher degree of
specialized judgment, such as those involving
complex financing, environmental or
economic-impact analysis, may be excluded.
Excluded transactions may be submitted for
consideration under Ex-Im Bank's standard
medium-term guarantee program.
Commercial lenders currently participating in
Ex-Im Bank's MTDA Program also include Wells
Fargo and NorthStar Trade Finance (owned by
several Canadian financial institutions).
Interested lenders may contact Tom Fitzpatrick,
Trade Finance and Insurance senior relationship
manager, at (202) 565-3642. Detailed
information on the Bank's MTDA program is
available on Ex-Im Bank's Web site at
http://www.exim.gov/products/medium_term_delegated_authority.cfm.
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