Ex-Im Approves $118 Million in Financing to Vietnam for Export of Lockheed Martin Satellite
October 1, 2012
(Ex-Im Bank)
Washington, D.C. — The board of the Export-Import Bank of the United States
(Ex-Im Bank) voted to authorize a $118 million direct loan to the government of
Vietnam for the export of a Lockheed Martin Space Systems Company
telecommunications satellite and additional goods and services.
The loan, which represents Ex-Im Bank's first satellite transaction with the
government of Vietnam, supported approximately 525 full-time equivalent American
jobs, according to Lockheed Martin estimates, and financed export sales
totalling $215 million.
"As one of our nine key markets, Vietnam affords American companies unique
export opportunities," said Ex-Im Bank Chairman and President Fred P. Hochberg.
"These opportunities promote economic growth in both countries, which in turn
supports American jobs in vital U.S. industries. The satellite transaction in
particular reflects the unsurpassed quality of American technology and the
demand for it abroad."
The Vietnam Post and Telecommunications Group (VNPT), a state-owned enterprise
headquartered in Hanoi acting on behalf of the government of Vietnam in the
transaction, hopes to satisfy the growing demand of telecommunications and
television markets emerging in the region.
"By providing financing for Vietnam Posts and Telecommunications Group, this
Ex-Im Bank loan supports U.S. manufactured satellites and U.S. jobs," said Linda
Reiners, Lockheed Martin Space Systems Commercial Ventures vice-president. "We
congratulate our long-term customer VNPT, with whom we have now partnered in the
manufacturing of two satellites."
The satellite, VINASAT-2, is a geosynchronous satellite that was launched May 15
and recently completed a series of in-orbit testing. Equipped with a payload of
24 active Ku-band transponders, the satellite provides coverage to Vietnam,
Cambodia, Laos, and Thailand.
BNP Paribas will serve as the documentation agent and letter-of-credit bank.
As of the end of FY 2011, Ex-Im Bank's credit exposure in Vietnam accounted for
$185 million of the Bank’s portfolio. In FY 2012, Ex-Im Bank authorized
approximately $1.4 billion to support U.S. satellite exports, exceeding its
financing for the industry in FY 2011.
Ex-Im Bank considered the transaction only after receiving presidential approval
to do so. According to the Bank's Charter, the president must first determine if
an Ex-Im Bank loan of $50 million or more to a Marxist-Leninist country is in
the national interest before the Bank’s board can vote on the transaction.
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.