Ex-Im Bank Signs $100 Million Agreement with PTA Bank
April 11, 2014
(Ex-Im Bank)
Washington, DC – Fred P. Hochberg, chairman and
president of the Export-Import Bank of the
United States (Ex-Im Bank), and Admassu
Tadesse, president and chief executive of the
Eastern and Southern African Trade and
Development Bank (PTA Bank), signed a $100
million memorandum of understanding (MOU) at a
conference hosted by the U.S. Chamber of
Commerce at the GE "Garage" here yesterday.
"Yesterday we reached an agreement to work with
members of the sub-Saharan African Diaspora
community in America who wish to export U.S.
goods and services to their home countries. The
agreement aligns with the White House's 'U.S.
Strategy Toward sub-Saharan Africa,' which
focuses on growth in the region," said Chairman
Hochberg. "By engaging Diaspora-owned
businesses, the arrangement will help U.S.
companies capitalize on unique opportunities
abroad and support jobs here at home while
contributing to the development of sub-Saharan
Africa."
The MOU signing capped a conference titled
"Unlocking Growth in Africa: How the Diaspora
can Partner with the Public and Private Sectors
in the U.S. and Africa" held at the GE-powered
"Garage," a new high-tech experiential showcase
where visitors can try out the latest
technologies, including 3D printers and laser
cutters.
According to the MOU, Ex-Im Bank and PTA Bank
will explore options for utilizing up to $100
million in Ex-Im Bank medium- and long-term
loan guarantees and/or direct loans to finance
U.S. exports to sub-Saharan Africa that target
both Diaspora businesses in the U.S. and PTA
Bank's member states.
Ex-Im Bank and PTA Bank have joined forces on
number of transactions over the last 15 years
to boost trade finance and U.S. exports to
Africa. In 2011, Ex-Im Bank guaranteed a $60
million loan extended by HSBC to PTA Bank that
financed the sale of American aircraft to
Rwanda's RwandAir Express.
"PTA Bank has been growing its financing by
about 30% per annum, of which close to half has
gone into energy and infrastructure, with the
renewable sub-sector a beneficiary. In the past
two years, we have co-financed several
independent power producers in various
countries such as Kenya, Mauritius, Tanzania
and Uganda, including wind farms and
mini-hydros," Mr. Tadesse said. "We are keen on
furthering our financing of infrastructure and
power development, and are looking forward to
expanded financial cooperation with
long-standing partners such as U.S. Exim Bank,
among others."
PTA Bank is a multilateral development bank
that provides development capital and services
to advance regional growth and integration.
In the past four years, Ex-Im Bank has
authorized more than $4 billion in financing
for U.S. exports to sub-Saharan Africa. In FY
2013 alone, Ex-Im Bank authorized a record 188
transactions totaling $604 million to
facilitate exports to the region. Ex-Im
Bank-supported exports accounted for three
percent of all U.S. merchandise exports to
sub-Saharan Africa during the same timeframe.
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.