Ex-Im Renews Supply-Chain Guarantee for Citibank Supporting CNH Suppliers
April 18, 2013
(Ex-Im Bank)
Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank)
renewed a 90-percent guarantee of a $100 million supply-chain facility for
Citibank to purchase invoices that are generated through the sales of goods and
services by eligible U.S. suppliers to CNH America LLC (CNH).
The authorization, which is Ex-Im’s second renewal of the facility, will support
small-business suppliers of CNH by increasing liquidity to fulfill new orders.
The facility is being provided under Ex-Im Bank’s Supply-Chain Finance Guarantee
Program.
“Ex-Im Bank’s second renewal of this Citibank facility for CNH suppliers
demonstrates our continued support for the small businesses that serve as
reliable suppliers of U.S. exporters. This financing enables them to improve
cash flow to increase sales and sustain jobs,” said Ex-Im Bank Chairman and
President Fred P. Hochberg. “We continue to look for new ways to improve the
program and tailor it to the unique needs of the companies involved.”
Ex-Im’s renewal of its supply-chain finance guarantee enables Citibank to extend
its purchase of invoices due (accounts receivable) from eligible U.S. suppliers
that arise from CNH’s purchases of goods and services for the production of
exportable farm and construction equipment. This helps qualified CNH suppliers
obtain cash more quickly to fulfill new orders.
“Citi is very pleased with our ongoing partnership with CNH and Ex-Im Bank, as
evidenced by the recent renewal of the supplier finance program. This facility
supports millions of dollars in export sales and enables hundreds of small
businesses to access affordable financing while providing an important liquidity
management tool for CNH,” said John Ahearn, global head of Trade for Global
Transaction Services, Citi.
CNH America LLC is a manufacturer of agricultural and construction equipment and
a wholly owned subsidiary of CNH Global, N.V. Its North American headquarters is
in Burr Ridge, Ill.
"CNH is pleased to participate in the renewal of this unique Ex-Im Bank program
as it will continue to help our small and medium-sized suppliers in the United
States to fund their business objectives,” said CNH President and CEO Richard
Tobin.
To participate in the Ex-Im Bank program, approved financial institutions must
have an existing supply-chain finance platform. Ex-Im Bank requires that at
least 50 percent of the credit provided be extended to suppliers meeting the
small-business definition of the Small Business Administration. Additionally,
the exported products must meet U.S. content requirements.
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