EXIM Renews Supply Chain Finance Guarantee of $180 Million Purchase Facility Supporting Sales of CFM International Aircraft Engines
September 10, 2021
(Ex-Im Bank)
Transaction Will Support an Estimated 600
American Jobs, Including Employment in the
Aircraft Manufacturing Supply Chain
WASHINGTON – Yesterday the Board of Directors
of the Export-Import Bank of the United States
(EXIM) approved the renewal of a 90 percent
guarantee of a $180 million purchase facility
under EXIM’s Supply Chain Finance Guarantee
Program. The transaction will support aircraft
engines sales from CFM International, Inc., in
Cincinnati, Ohio, to The Boeing Company for use
in exports.
EXIM’s guarantee will further support U.S.
jobs as the COVID-19 pandemic continues to
impact the commercial lending market,
particularly in sectors such as aviation that
have been heavily impacted by the pandemic.
EXIM estimates that the renewal of the facility
will support $353 million in export sales and
600 American jobs, including jobs at businesses
that make up the aircraft manufacturing supply
chain across Indiana, North Carolina, and
Ohio.
“One of EXIM’s primary roles is to fill
gaps in private-sector financing in support of
U.S. exports. Throughout the pandemic, EXIM has
fulfilled that mission by helping to ensure
that American manufacturing jobs remain secure
while the world navigates the historic
disruptions to various markets and sectors,”
said EXIM Acting President and Chairman James
Burrows. “The renewal of EXIM’s guarantee
of this facility creates greater certainty for
American workers as our country continues to
build back better from the pandemic.”
The guaranteed lender is Credit Agricole
Corporate and Investment Bank in New York, New
York. The EXIM-guaranteed purchase facility was
originally approved by EXIM’s Board of
Directors in July 2020 for $510 million. The
lender will continue to purchase accounts
receivable due from Boeing to CFM International
for purchases of its LEAP 1B aircraft engines
being used in the Boeing 737 MAX aircraft. The
EXIM-guaranteed financing will be repaid over
nine months.
EXIM’s Supply Chain Finance Guarantee Program
enables approved lenders to expand capacity
under their existing supply chain programs to
reach more U.S. exporters and their respective
suppliers. Under the program, EXIM provides a
90 percent guarantee to a participating lender
that purchases accounts receivable from
suppliers of an approved exporter, facilitating
cash flow and liquidity for both the supplier
and the exporter.
CFM International is the world’s leading
supplier of jet engines for single-aisle
aircraft. A 50/50 joint company between GE and
Safran Aircraft Engines, CFM International
develops, produces, and sells the
advanced-technology LEAP engine as well as the
best-selling CFM56 engine.
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