Ex-Im Renews Supply-Chain Guarantee for Citibank Supporting CNH Suppliers
April 18, 2013
(Ex-Im Bank)
Washington, D.C. – The Export-Import Bank of
the United States (Ex-Im Bank) renewed a
90-percent guarantee of a $100 million
supply-chain facility for Citibank to purchase
invoices that are generated through the sales
of goods and services by eligible U.S.
suppliers to CNH America LLC (CNH).
The authorization, which is Ex-Im’s second
renewal of the facility, will support
small-business suppliers of CNH by increasing
liquidity to fulfill new orders. The facility
is being provided under Ex-Im Bank’s
Supply-Chain Finance Guarantee Program.
“Ex-Im Bank’s second renewal of this Citibank
facility for CNH suppliers demonstrates our
continued support for the small businesses that
serve as reliable suppliers of U.S. exporters.
This financing enables them to improve cash
flow to increase sales and sustain jobs,” said
Ex-Im Bank Chairman and President Fred P.
Hochberg. “We continue to look for new ways to
improve the program and tailor it to the unique
needs of the companies involved.”
Ex-Im’s renewal of its supply-chain finance
guarantee enables Citibank to extend its
purchase of invoices due (accounts receivable)
from eligible U.S. suppliers that arise from
CNH’s purchases of goods and services for the
production of exportable farm and construction
equipment. This helps qualified CNH suppliers
obtain cash more quickly to fulfill new
orders.
“Citi is very pleased with our ongoing
partnership with CNH and Ex-Im Bank, as
evidenced by the recent renewal of the supplier
finance program. This facility supports
millions of dollars in export sales and enables
hundreds of small businesses to access
affordable financing while providing an
important liquidity management tool for CNH,”
said John Ahearn, global head of Trade for
Global Transaction Services, Citi.
CNH America LLC is a manufacturer of
agricultural and construction equipment and a
wholly owned subsidiary of CNH Global, N.V. Its
North American headquarters is in Burr Ridge,
Ill.
"CNH is pleased to participate in the renewal
of this unique Ex-Im Bank program as it will
continue to help our small and medium-sized
suppliers in the United States to fund their
business objectives,” said CNH President and
CEO Richard Tobin.
To participate in the Ex-Im Bank program,
approved financial institutions must have an
existing supply-chain finance platform. Ex-Im
Bank requires that at least 50 percent of the
credit provided be extended to suppliers
meeting the small-business definition of the
Small Business Administration. Additionally,
the exported products must meet U.S. content
requirements.
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