Ex-Im Bank to Leverage Industry Expertise to Expedite Export Financing for Business Aircraft and Helicopters
May 14, 2012
(Ex-Im Bank)
GENEVA, SWITZERLAND: U.S. manufacturers of
business aircraft and helicopters will benefit
from a new process to assess credit risks and
expedite foreign-buyer financing from the
Export-Import Bank of the United States (Ex-Im
Bank). Ex-Im Bank will work with qualified
industry experts to perform due diligence and
credit analysis to facilitate the Bank’s
support for U.S. business-aircraft exports.
The announcement was made today by Ex-Im Bank
Chairman and President Fred P. Hochberg at the
12th annual European Business Aviation
Convention and Exhibition (EBACE), being held
in Geneva, Switzerland, May 14-16.
“Business aircraft and helicopters are a vital
part of the U.S. aerospace industry that is one
of the most competitive sectors of the economy
and employs thousands of Americans. Ex-Im Bank
understands that business-aircraft transactions
require specialized knowledge and experience
but has limited resources to meet the growing
demand for export financing in this industry.
By leveraging private-sector expertise to
assist and support our evaluation of these
credits, we will be able to expand Ex-Im Bank’s
support for U.S. business-aircraft exports and
the manufacturing jobs that they sustain,”
Chairman Hochberg said.
Ex-Im Bank is implementing the new process to
address the increased demand for export credits
for business aircraft and helicopters arising
from the growing percentage of
U.S.-manufactured aircraft that are sold to
foreign buyers. The process is intended to
result in a more complete and comprehensive
transaction package being submitted to Ex-Im
Bank. The more complete package will expedite
the application, approval and closing process
for foreign borrowers of Ex-Im-supported
financing in business-aircraft transactions.
Using qualified advisors is also expected to
provide enhanced credit structures, resulting
in additional credit protections for Ex-Im
Bank.
The process is designed to benefit
manufacturers that do not have a captive
financing company but which can now designate
one or more advisors to work with their foreign
buyers.
The process will be available immediately
through any advisor that has demonstrated the
requisite knowledge, experience and expertise
with business-aircraft financing. Ex-Im Bank
developed the process following upon the
successful model of its $500 million loan
facility approved in 2009 that provided funds
to assist Textron Inc. in financing exports of
two of its companies, Cessna Aircraft Company
and Bell Helicopter Textron. The facility
enabled Textron’s Finance segment to provide
competitive terms and interest rates to finance
the export of more than 100 Cessna aircraft
exports and six Bell helicopters.
Last week, Ex-Im Bank’s board of directors
approved a second facility for Textron’s
Finance segment, providing a guarantee of a
$350 million loan from PNC Bank to a Textron
subsidiary to finance the export of additional
Cessna aircraft and Bell helicopters.
In FY 2011, Ex-Im Bank authorized more than
$12.6 billion in financing to support the
export of U.S.-manufactured aircraft of all
types, including approximately $90 million for
10 business aircraft and helicopters exports to
four countries – Brazil, Mexico, Panama and
Switzerland.
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