BANK SUPPORTS
ECO-FRIENDLY EXPORTS
The Export-Import Bank of the United States (Ex-Im Bank) increased insurance support for environmentally beneficial exports by over 47 percent in fiscal year 2000. Insurance policies covering environmental exports increased to $24.7 million in FY2000 from $16.8 million the previous year, and Working Capital Guarantees in support of environmental exports jumped 177 percent to $58.3 million in FY2000 from $21 million in FY1999. Ex-Im Bank's environmental exports program has increased from 13 transactions in FY1994 to 62 transactions in FY2000, with a total portfolio well in excess of $2 billion.
"This program can help emerging markets address critical state and municipal environmental needs, by improving their ability to purchase clean air, water, and energy technology," said Dan Renberg, member of the board of directors.
Renberg said the financing features of Ex-Im Bank's environmental program help US exporters gain a competitive advantage over their foreign counterparts. "While the US market for environmental technologies is estimated to grow 1.8 percent over the next few years, Latin American and Asian markets are projected to grow at annual rates of 12 percent and 10 percent respectively," he noted. "Clearly for US companies, the future is in international markets and Ex-Im Bank can help."
Ex-Im Bank's environmental program provides enhanced financing for US environmental exports, including:
- Export credit insurance featuring open account credit on terms of up to 180 days, 95 percent commercial coverage and 100 percent political coverage;
- Maximum allowable repayment terms under international guidelines, capitalization of interest during construction of a project, and local cost coverage;
- Most favorable terms permitted under the Organization for Economic Cooperation and Development (OECD) guidelines and Ex-Im Bank's Environmental Export Program.
Renberg cited examples of US companies who have successfully used Ex-Im Bank for their environmental exports:- Zond Systems, Tehachapi, CA, used Ex-Im Bank's medium-term insurance to offer competitive financing on the sale of a wind turbine to a Mexican cement manufacturer. The wind turbine lowered the customers' demand for electricity and allowed a costly and polluting diesel generator to be retired.
- Golden Genesis Company of Scottsdale, AZ, is using Ex-Im Bank's short-term insurance to arrange an open account credit line for the purchase of solar home lighting systems for Kenitel Ltd., of Nairobi, Kenya, one of East Africa's leading solar technology companies.
- Paul C. Rizzo of Monroeville, PA, benefited from an Ex-Im Bank long-term loan guarantee to export $1.5 million of design and engineering services for the creation of solid waste landfills in 50 Mexican cities. The company added five additional jobs as a direct result of the contract.
- Aqua-Chem of Milwaukee, WI, won an $8 million contract to build a desalination plant for Aruba's Water and Electricity Board with the backing of an Ex-Im Bank long-term loan guarantee.
Ex-Im Bank is an independent federal agency that provides export credit insurance, loans and loan guarantees to finance exports of US goods and services, mainly to developing markets. In fiscal year 2000, Ex-Im Bank helped to support more than $15.5 billion of US exports worldwide.
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Written by: Export-Import Bank of the United States
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