Ex-Im Bank Signs $100 Million Agreement with PTA Bank
April 11, 2014
(Ex-Im Bank)
Washington, DC – Fred P. Hochberg, chairman and president of the Export-Import
Bank of the United States (Ex-Im Bank), and Admassu Tadesse, president and chief
executive of the Eastern and Southern African Trade and Development Bank (PTA
Bank), signed a $100 million memorandum of understanding (MOU) at a conference
hosted by the U.S. Chamber of Commerce at the GE "Garage" here yesterday.
"Yesterday we reached an agreement to work with members of the sub-Saharan
African Diaspora community in America who wish to export U.S. goods and services
to their home countries. The agreement aligns with the White House's 'U.S.
Strategy Toward sub-Saharan Africa,' which focuses on growth in the region,"
said Chairman Hochberg. "By engaging Diaspora-owned businesses, the arrangement
will help U.S. companies capitalize on unique opportunities abroad and support
jobs here at home while contributing to the development of sub-Saharan Africa."
The MOU signing capped a conference titled "Unlocking Growth in Africa: How the
Diaspora can Partner with the Public and Private Sectors in the U.S. and Africa"
held at the GE-powered "Garage," a new high-tech experiential showcase where
visitors can try out the latest technologies, including 3D printers and laser
cutters.
According to the MOU, Ex-Im Bank and PTA Bank will explore options for utilizing
up to $100 million in Ex-Im Bank medium- and long-term loan guarantees and/or
direct loans to finance U.S. exports to sub-Saharan Africa that target both
Diaspora businesses in the U.S. and PTA Bank's member states.
Ex-Im Bank and PTA Bank have joined forces on number of transactions over the
last 15 years to boost trade finance and U.S. exports to Africa. In 2011, Ex-Im
Bank guaranteed a $60 million loan extended by HSBC to PTA Bank that financed
the sale of American aircraft to Rwanda's RwandAir Express.
"PTA Bank has been growing its financing by about 30% per annum, of which close
to half has gone into energy and infrastructure, with the renewable sub-sector a
beneficiary. In the past two years, we have co-financed several independent
power producers in various countries such as Kenya, Mauritius, Tanzania and
Uganda, including wind farms and mini-hydros," Mr. Tadesse said. "We are keen on
furthering our financing of infrastructure and power development, and are
looking forward to expanded financial cooperation with long-standing partners
such as U.S. Exim Bank, among others."
PTA Bank is a multilateral development bank that provides development capital
and services to advance regional growth and integration.
In the past four years, Ex-Im Bank has authorized more than $4 billion in
financing for U.S. exports to sub-Saharan Africa. In FY 2013 alone, Ex-Im Bank
authorized a record 188 transactions totaling $604 million to facilitate exports
to the region. Ex-Im Bank-supported exports accounted for three percent of all
U.S. merchandise exports to sub-Saharan Africa during the same timeframe.
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