Ex-Im Bank Approves More Than $1.2 Billion in Financing for the Export of U.S. Satellites to Mexico and Australia
July 23, 2012
(Ex-Im Bank)
Transactions Support Thousands of American Jobs
WASHINGTON, D.C. - The Export-Import Bank of the United States (Ex-Im Bank)
approved two separate transactions totaling more than $1.2 billion to finance
the export of American-made telecommunications satellites to Mexico and
Australia.
Approximately 750 U.S. aerospace jobs will be directly supported in Washington
State, California, Pennsylvania and Virginia. In addition, the exports will
indirectly support more than 1,000 additional jobs at suppliers throughout the
United States.
Ex-Im Bank is providing a $922 million loan guarantee to support the export of
three satellites and related equipment to the Mexican government for the MEXSAT
regional mobile satellite system. Mexico's Secretariat of Communications and
Transportation will purchase the satellites from Boeing Space and Intelligence
Systems in El Segundo, Calif. Boeing will produce two satellites with mobile
service satellite (MSS) capacity and will subcontract a third satellite with
fixed service satellite (FSS) capacity from Orbital Sciences Corporation in
Dulles, Va.
The Bank is also providing a $281 million direct loan to Jabiru Satellite Ltd.
(a subsidiary of NewSat Ltd.) in Southbank, Australia, for the purchase of
satellite and ground equipment from Lockheed Martin Space Systems Co. in
Bethesda, Md.
In FY 2012 to date, Ex-Im Bank has authorized a total of almost $1.3 billion to
support U.S. satellite exports, matching its financing for this industry in all
of FY 2011.
"American workers produce the best technology in the world, and that is why our
satellites are being used from Mexico to Australia," said Fred P. Hochberg, the
chairman and president of Ex-Im Bank. "These transactions help sustain and grow
high-quality jobs across the country and put us one step closer to meeting
President Obama's National Export Initiative goal of doubling U.S. exports by
2015."
Boeing Exports Satellites to Mexican Government
Ex-Im Bank is guaranteeing a $922 million loan from Morgan Chase & Co. of
New York to Mexico's Secretariat of Communications and Transportation for the
purchase of two MSS satellites made by Boeing and one FSS satellite made by
Orbital Sciences Corporation, and related equipment and services.
The three satellites will be used to deploy the MEXSAT system, a
next-generation, space-based communications platform that will help support
social and economic development within Mexico. Various sectors will benefit from
MEXSAT, including programs focusing on education, health care, disaster relief
and rural telephonic service.
Boeing will design and deliver an end-to-end L-band MSS system consisting of two
Boeing 702HP geomobile satellites, a spacecraft operations center and related
ground infrastructure. Boeing will subcontract with Orbital Sciences Corporation
for a FSS satellite for C-band and Ku-band communications and a spacecraft
operations center.
Approximately 400 Boeing employees will work directly on the MEXSAT program. The
transaction also will support an estimated 80 jobs at Orbital Sciences
Corporation. Hundreds of additional jobs will be indirectly supported at related
vendors throughout the United States.
"Boeing's Geo-Mobile (GEM) product line is the most capable mobile satellite
available in the global market. Ex-Im's support for this transaction makes it
possible to provide this capability to a valued international customer that
shares our border, and, in the process, support U.S. high-technology jobs and
American technology excellence in this arena," said Craig Cooning, vice
president and general manager of Boeing Space and Intelligence Systems.
Mexico is one of Ex-Im Bank's nine key markets and accounted for $8.3 billion of
the Bank's worldwide credit exposure at the end of FY 2011. In FY 2012 to date,
the Bank has authorized approximately $1.8 billion in financing for U.S. exports
to Mexico.
Lockheed Martin Satellite Export to Jabiru Satellite Ltd. in Australia
Ex-Im Bank's $281 million direct loan to Jabiru Satellite Ltd. is the Bank's
first satellite transaction in Australia and its first satellite transaction
involving Lockheed Martin as the exporter. The transaction will directly support
250 aerospace-based jobs at Lockheed's manufacturing facilities in Sunnyvale,
Calif., and Newtown, Pa. It will indirectly support more than 650 jobs at
related suppliers across the country.
"The Ex-Im Bank loan is critical in solidifying a U.S-based satellite
procurement that will protect and secure U.S. jobs in the aerospace industry,"
said Linda Reiners, vice president of Lockheed Martin Space Systems Commercial
Ventures. "We congratulate NewSat and look forward to this exciting opportunity
to deliver the high-quality Jabiru-1 satellite."
Jabiru Satellite Ltd. will contract the operation of the satellite to MEASAT
Satellite Systems Sdn. Bhd. of Malaysia, which operates a fleet of five
satellites reaching 145 countries in Asia, Africa and Europe.
Jabiru-1 will be Australia's first privately-owned commercial satellite. It will
rely upon 8.1 gigahertz of capacity to provide Ka-band and Ku-band coverage to
government, corporate and industrial sectors in the high-growth regions of the
Middle East and Africa during its 15 years of useful life. The satellite's
launch date is scheduled for 2014.
In FY 2011, Ex-Im Bank's credit exposure in Australia represented $1.7 billion
of the Bank's portfolio. In FY 2012 to date, the Bank has authorized more than
$3.1 billion in financing for U.S. exports to Australia.
Ex-Im Bank Chairman Hochberg will meet with government and business leaders in
Australia from August 13-17.
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