Ex-Im Bank Approves More Than $1.2 Billion in Financing for the Export of U.S. Satellites to Mexico and Australia
July 23, 2012
(Ex-Im Bank)
Transactions Support Thousands of American
Jobs
WASHINGTON, D.C. - The Export-Import Bank of
the United States (Ex-Im Bank) approved two
separate transactions totaling more than $1.2
billion to finance the export of American-made
telecommunications satellites to Mexico and
Australia.
Approximately 750 U.S. aerospace jobs will be
directly supported in Washington State,
California, Pennsylvania and Virginia. In
addition, the exports will indirectly support
more than 1,000 additional jobs at suppliers
throughout the United States.
Ex-Im Bank is providing a $922 million loan
guarantee to support the export of three
satellites and related equipment to the Mexican
government for the MEXSAT regional mobile
satellite system. Mexico's Secretariat of
Communications and Transportation will purchase
the satellites from Boeing Space and
Intelligence Systems in El Segundo, Calif.
Boeing will produce two satellites with mobile
service satellite (MSS) capacity and will
subcontract a third satellite with fixed
service satellite (FSS) capacity from Orbital
Sciences Corporation in Dulles, Va.
The Bank is also providing a $281 million
direct loan to Jabiru Satellite Ltd. (a
subsidiary of NewSat Ltd.) in Southbank,
Australia, for the purchase of satellite and
ground equipment from Lockheed Martin Space
Systems Co. in Bethesda, Md.
In FY 2012 to date, Ex-Im Bank has authorized a
total of almost $1.3 billion to support U.S.
satellite exports, matching its financing for
this industry in all of FY 2011.
"American workers produce the best technology
in the world, and that is why our satellites
are being used from Mexico to Australia," said
Fred P. Hochberg, the chairman and president of
Ex-Im Bank. "These transactions help sustain
and grow high-quality jobs across the country
and put us one step closer to meeting President
Obama's National Export Initiative goal of
doubling U.S. exports by 2015."
Boeing Exports Satellites to Mexican
Government
Ex-Im Bank is guaranteeing a $922 million loan
from Morgan Chase & Co. of New York to
Mexico's Secretariat of Communications and
Transportation for the purchase of two MSS
satellites made by Boeing and one FSS satellite
made by Orbital Sciences Corporation, and
related equipment and services.
The three satellites will be used to deploy the
MEXSAT system, a next-generation, space-based
communications platform that will help support
social and economic development within Mexico.
Various sectors will benefit from MEXSAT,
including programs focusing on education,
health care, disaster relief and rural
telephonic service.
Boeing will design and deliver an end-to-end
L-band MSS system consisting of two Boeing
702HP geomobile satellites, a spacecraft
operations center and related ground
infrastructure. Boeing will subcontract with
Orbital Sciences Corporation for a FSS
satellite for C-band and Ku-band communications
and a spacecraft operations center.
Approximately 400 Boeing employees will work
directly on the MEXSAT program. The transaction
also will support an estimated 80 jobs at
Orbital Sciences Corporation. Hundreds of
additional jobs will be indirectly supported at
related vendors throughout the United States.
"Boeing's Geo-Mobile (GEM) product line is the
most capable mobile satellite available in the
global market. Ex-Im's support for this
transaction makes it possible to provide this
capability to a valued international customer
that shares our border, and, in the process,
support U.S. high-technology jobs and American
technology excellence in this arena," said
Craig Cooning, vice president and general
manager of Boeing Space and Intelligence
Systems.
Mexico is one of Ex-Im Bank's nine key markets
and accounted for $8.3 billion of the Bank's
worldwide credit exposure at the end of FY
2011. In FY 2012 to date, the Bank has
authorized approximately $1.8 billion in
financing for U.S. exports to Mexico.
Lockheed Martin Satellite Export to
Jabiru Satellite Ltd. in Australia
Ex-Im Bank's $281 million direct loan to Jabiru
Satellite Ltd. is the Bank's first satellite
transaction in Australia and its first
satellite transaction involving Lockheed Martin
as the exporter. The transaction will directly
support 250 aerospace-based jobs at Lockheed's
manufacturing facilities in Sunnyvale, Calif.,
and Newtown, Pa. It will indirectly support
more than 650 jobs at related suppliers across
the country.
"The Ex-Im Bank loan is critical in solidifying
a U.S-based satellite procurement that will
protect and secure U.S. jobs in the aerospace
industry," said Linda Reiners, vice president
of Lockheed Martin Space Systems Commercial
Ventures. "We congratulate NewSat and look
forward to this exciting opportunity to deliver
the high-quality Jabiru-1 satellite."
Jabiru Satellite Ltd. will contract the
operation of the satellite to MEASAT Satellite
Systems Sdn. Bhd. of Malaysia, which operates a
fleet of five satellites reaching 145 countries
in Asia, Africa and Europe.
Jabiru-1 will be Australia's first
privately-owned commercial satellite. It will
rely upon 8.1 gigahertz of capacity to provide
Ka-band and Ku-band coverage to government,
corporate and industrial sectors in the
high-growth regions of the Middle East and
Africa during its 15 years of useful life. The
satellite's launch date is scheduled for 2014.
In FY 2011, Ex-Im Bank's credit exposure in
Australia represented $1.7 billion of the
Bank's portfolio. In FY 2012 to date, the Bank
has authorized more than $3.1 billion in
financing for U.S. exports to Australia.
Ex-Im Bank Chairman Hochberg will meet with
government and business leaders in Australia
from August 13-17.
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.