FINANCING SOLUTIONS FOR 2003

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FINANCING SOLUTIONS FOR 2003
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INTRODUCTION

• Official export credit agency of the U.S.
• Founded 1934
• Independent Agency
• Mission To assist in the financing of U.S.
  exports
• Support about 15 billion in exports annually
• Home Office Washington, DC and 6
• Regional Offices, approximately 400 staff

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WHAT EX-IM DOES

• Provide Export Financing Solutions
• Guarantees
• Loans
• Insurance

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EX-IM OBJECTIVES

• Provide financial support for U.S. exports
• Supplement commercial financing
• Find reasonable assurance of repayment
• Meet foreign competition

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WHEN TO USE EX-IM BANK

• TERM ISSUE
• Longest terms permissible under the
  international agreements
• SIZE ISSUE
• No project limitation
• No sector limitation
• No country limitation
• No minimum contract
• RISK ISSUE
• Seek risk mitigants

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WHAT CAN EX-IM DO FOR CHINESE IMPORTERS

• Provide short, medium and long-term support
• Provide financing for private and public sectors

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SUCCESS STORY

• Ex-Im Bank supported Chindex sales of 8.7
  million of medical equipment for use in the
  health care sector

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SUCCESS STORY

• Ex-Im Bank supported sales of General Electric
  medical equipment of 8.9 million.

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Ex-Im Bank Programs

• INSURANCE AND GUARANTEE
• PROGRAMS

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APPLICATION FEES

• Letter of Interest 100
• Preliminary Commitment 1/10 of 1
  of financed
  portion
• 
  25,000 cap

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COMMITMENT FEE

• Program
• Direct Loan 1/2 on undisbursed amt
• Guarantee 1/8 on undisbursed amt
• Credit Guarantee Facility
• 1/16 flat

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EXPOSURE FEE

• Exposure fee determined by
• Country risk
• Percent of cover
• Drawdown period
• Repayment period
• Fee financed
• Timing of fee payment

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EX-IM BANK EXPOSURE FEE CALCULATOR
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Ex-Im Bank Exposure Fee Level of Country (1-7
Percentage of Cover
100.0
Product (MT Insurance 2, Loan or Guarantee 3)
3
Repayment Period (Years)
5.00
Drawdown Period (Months)
12
Financed? (Y/N)
Y
Paid Up Front (F) or As Drawn (D)
D
Exposure Fee Is
Transaction Risk Increment
-1
0
1
2
3
4
5
1.58


1.94

2.12

2.29

2.48

2.66

1.76
(Political Only)
(Sovereign)
(Non-Sovereign -----------------------------------
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How To Apply

• Start with Letter of Interest
• Internet http//www.exim.gov
• E-mail talaat.rahman_at_exim.gov
• Phone [phone]
• Fax [phone]

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INTERNAL PROCESSING OF APPLICATIONS

• Complete application received
• Approval by Ex-Im
• Short-Term ? 10 business days
• Medium-Term ? 20 business days
• Long-Term ? 30 business days

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WHO CAN APPLY

• Type Eligible Applicant
• Letter of Interest Buyer US Exporter
• Preliminary Commit US Exporter US Banker
• Final Commitment Buyer US Banker

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Environmental Exports Program
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Case Study Daisibi Environmental

• Ex-Im Banks Environmental Enhancement Program
  enabled Daisibi Environmental Corp. to offer
  financing for a 5.4MM contract for air quality
  monitoring stations in 11 Chinese cities
• The equipment was purchased by Chinas State
  Environmental Protection Agency and guaranteed by
  the China Construction Bank

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Case Study Daisibi Environmental

• Bank of America (B of A) structured an interest
  rate buydown of 3.9 critical for the
  transaction approval
• Ex-Im Bank issued a loan guarantee to Bank of
  America which made the loan to the China
  Construction Bank to fund the transaction. The
  end user for the equipment was Chinas State
  Environmental Protection Agency

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Thank You