AirFinance and Apple Bank Named EXIM 2021 Lenders of the Year
September 22, 2021
(Ex-Im Bank)
Aircraft Financing Arranger and Lender Recognized for Successful Collaboration
Meeting Liquidity Challenges of COVID-19 Pandemic
WASHINGTON – The Export-Import Bank of the United States (EXIM) today gave the
Lender of the Year award to AirFinance Leasing LLC in Virginia and to Apple Bank for Savings in
New York, New York, in recognition of their successful collaboration in finding
a creative financing solution that provided liquidity to an aircraft
manufacturer in Florida in the face of the challenges caused by the COVID-19
pandemic. The awards were presented today during EXIM’s 2021 Annual Conference
being held virtually September 21-23.
At the onset of the COVID-19 pandemic, the commercial financing market
temporarily was very limited. AirFinance sought prospects for participation in
EXIM programs and found a candidate for a creative solution with Embraer
Aircraft (EEA) in Melbourne, Florida. EEA’s business model is to deliver
business jets to foreign buyers that are required to pay a deposit of 20 to 30
percent upfront and then pay the remaining balance upon delivery of the
aircraft. Due to pandemic travel restrictions, foreign buyers were not able to
travel to the United States to take delivery of their aircraft—which meant
that the cash invested by EEA in those aircraft would be tied up indefinitely.
AirFinance, an EXIM Qualified Advisor, informed EXIM’s Business Credit
Division of the situation and proposed a unique inventory-only facility through
which EEA would be allowed to borrow against the aircraft waiting to be picked
up by foreign buyers as collateral for the loan. The facility is unique because
most EXIM working capital guarantees are provided on facilities where the
accounts receivable is the primary collateral. This inventory-only facility
enabled EEA to borrow the funds they needed from Apple Bank for Savings to
continue operations and enabled EEA to maintain all of its U.S. jobs.
“As the facility for Embraer Executive Aircraft demonstrates, EXIM benefits
from creative lending partners such as AirFinance and Apple Bank for Savings
because they seek out gaps in the market and partner with us to provide the
export financing that our exporters need to maintain and grow their export sales
and sustain and add American jobs,” said EXIM Business Credit Division Vice
President Steven Freshour, who presented the awards.
“AirFinance’s long-term relationship and trust with EXIM was essential to
partnering with EXIM’s Working Capital Division to customize and tailor a
program that had long been used in EXIM, especially in designing the approval so
it would work for how a U.S. aircraft manufacturer sells and delivers its
products. The EXIM team was diligent, constructive, creative, and responsive,
and every decision they made had the mission of creating and protecting U.S.
jobs at the forefront,” said AirFinance Managing Partner Kirsten Bartok Touw.
“The EXIM 2021 Deal of the Year Award is a milestone in the longstanding
relationship we have had with EXIM, since 2009 to finance the export of
wide-body, single-aisle, regional and business jet aircraft. We are grateful to
be recognized with this award, and we look forward to continuing our deep and
productive partnership with EXIM,” said Steven C. Bush, Chairman, President
and Chief Executive Officer of Apple Bank.
Dana R. MacKinnon, Senior Vice President and Head of Export Credit, stated,
“We are extremely honored to receive this award and to support Embraer’s
manufacturing facility and hundreds of American aircraft manufacturing jobs.
Apple Bank, through its longstanding relationship with AirFinance will continue
to remain the ‘go-to’ bank for EXIM-backed working capital facility
financings.”
Apple Bank for Savings has partnered with EXIM for more than a decade. The
lender has financed the export of U.S.-manufactured wide-body and narrow-body
commercial aircraft and corporate business jet aircrafts to a range of airlines,
aircraft leasing companies, regional airlines, and aircraft operators around the
world. As a result, the partnership between Apple Bank for Savings and EXIM has
expanded the global reach of the agency’s customer base and provided a solid
earnings foundation for the bank’s substantial export credit business.
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