Citi Commercial Bank Approves Nearly $1 Million To Finance Texas Small-Business Exports Under Ex-Im Bank's Medium-Term Delegated Authority Program
June 20, 2012
(Ex-Im Bank)
WASHINGTON, D.C.: The Export-Import Bank of the United States (Ex-Im Bank) today
announced that Citi Commercial Bank has approved its first transaction under
Ex-Im Bank's Medium-Term Delegated Authority Program (MTDA), an initiative to
expedite export financing for U.S. small businesses.
Citi Commercial Bank has authorized an Ex-Im Bank-guaranteed loan of
approximately $970,000 to Exinsa S.A. in Cancún, Mexico, to purchase a TT2550
chain trencher from Trench-Tech International Inc., a small-business
manufacturer in Roanoke, Texas. The chain trencher (a type of equipment that can
cut through very hard ground) will be used in the Mexican buyer's construction
business. The buyer is a repeat customer of the U.S. exporter.
Approved lenders under Ex-Im Bank's MTDA Program can authorize Ex-Im Bank's
guarantees to support medium-term commercial loans for foreign buyers of U.S.
capital goods such as machinery and equipment. The program is designed to reduce
transaction turnaround time and provide additional support for U.S.
small-business exports.
"Ex-Im Bank's Medium-Term Delegated Authority Program is a vehicle to increase
exporting by U.S. small and medium-sized businesses, one of the main goals of
President Obama's National Export Initiative. Ex-Im Bank is partnering with
commercial lenders to ensure that foreign buyers have ready access to financing
for their purchases of U.S. goods and services. The exports supported through
this program are helping small businesses maintain American jobs," said Ex-Im
Bank Chairman Fred P. Hochberg.
"One of Citi Commercial Bank's greatest strengths is our capacity to leverage
Citi's unequaled global footprint to meet the ever-growing demand for
international services from our U.S. clients. We are thrilled to partner with
Ex-Im Bank and capitalize on our strengths to help finance a transaction that
will generate investment for a thriving U.S. business and create new jobs here
and abroad," said Citi Commercial Bank Product Sales Director Rajiv P. Goswami.
"The new MTDA Ex-Im program offered through Citi Commercial Bank enabled us to
complete a sales transaction with Exinsa S.A. de C.V., located in Cancún,
Mexico. Without this new program, we most likely would not have been able to
complete this transaction," said Jerry F. Gilbert, president of Trench-Tech
International Inc.
Under the program, approved lenders have delegated authority to underwrite and
authorize Ex-Im Bank-guaranteed medium-term transactions without prior Ex-Im
Bank review and approval. In each transaction, the lender is required to share
the credit risk by retaining 10 percent of the commercial risk but also retains
10 percent of the Ex-Im Bank exposure fee. Transactions involving small-business
exporters or small-business suppliers are eligible for increased Ex-Im Bank risk
coverage, and for these transactions, the lender's commercial-risk retention is
reduced to 8 percent.
Approved lenders have the thorough knowledge of Ex-Im Bank policies and credit
standards to expedite approvals and help U.S. exporters offer timely financing
to their foreign customers. Loans approved under the program may have repayment
terms of two to five years.
Transactions requiring a higher degree of specialized judgment, such as those
involving complex financing, environmental or economic-impact analysis, may be
excluded. Excluded transactions may be submitted for consideration under Ex-Im
Bank's standard medium-term guarantee program.
Commercial lenders currently participating in Ex-Im Bank's MTDA Program also
include Wells Fargo and NorthStar Trade Finance (owned by several Canadian
financial institutions).
Interested lenders may contact Tom Fitzpatrick, Trade Finance and Insurance
senior relationship manager, at (202) 565-3642. Detailed information on the
Bank's MTDA program is available on Ex-Im Bank's Web site at
http://www.exim.gov/products/medium_term_delegated_authority.cfm.
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