1. Jobs Through Exports E XPORT -I MPORT B ANK of the U NITED S TATES E XPORT -I MPORT B ANK of the U NITED S TATES Trade Financing Solutions Medical Technologies Financing

2. Export Import Bank ? Official Export Credit Agency (ECA) of U.S. Government Established in 1934 Headquarters in Washington DC, 8 Regional Mission – To create and sustain jobs in the U.S. by substantially increasing the number of companies we serve and expanding their access to global markets. 2010 Results - $24.5 Billion

3. Solution 1: (MTI) Pre-Export Financing  Small- and medium-sized U.S. companies  A 90% conditional guarantee to lenders for export- related working capital loans  Loans can be transaction specific or revolving  No minimum or maximum loan amount

4. Solution 2: Short-Term, Accounts Receivable Insurance  Coverage Parameters:  Up to 180 days, exceptionally 1 year  Commercial and political risks  Lender Policies:  Bank Letter of Credit  Financial Institution Buyer Credit  Exporter Policies:  Multi-Buyer or Single-Buyer

5. Solution 3: Medium-Term Financing  Used to finance foreign buyers purchasing U.S. capital equipment:  85% financed, 15% cash down payment  Repayment up to 5 years, (MTI) 7 years  Amounts of $10 million or less  Financing can be accomplished through the following Ex-Im products:  Lender loan guarantees (MTI)  Export Credit Insurance (MTI)  Direct Loans (few)

6. Medical Technologies Initiative  Program Initiated Feb. 2001  Intended to stimulate U.S. exports in Medical Technologies Industries  Rationale  Weaker than average buyer credits  Small Business Participation  Humanitarian Aspect Support Healthcare in the Emerging Nations

7. Medical Initiative Approach The Medical Initiative offers solutions for the export of medical technologies to foreign borrowers that would not go forward without Exim support. For those transactions too weak to consider under standard terms we seek to strengthen in other financially acceptable methods.

8. Medical Initiative Approach All Transactions considered first under Standard Medium-Term Credit Guidelines:  100/85 model (15% cash payment)  Financing bank or exporter is offered 100% protection of principal and interest for financed portion.  Subject to standard Ex-Im Bank credit ratios and tests. (MTCS)

9. Medical Initiative Approach Primary Ways to Enhance Transactions  Liens and/or Side Collateral  Guarantors  Vendor Agreement  Exporter Participation  Other “Innovative” Approaches  Automatic Local Cost Cover Local Cost consists of costs incurred in buyer’s country or Up to 30% of Contract price (No Cash Payment Requirement)

10. Medical Initiative Approach Will Look at “Start-up” Hospital/Clinic  Feasibility Study  Guarantors  Collateral  Pro-forma Financials and Cash Flows  25-30% Equity Participation by Founders  See MEI Guidelines – (Website)

11. Repayment Terms Starting Point Rules: Repayment can begin no more than six months from one of following:  Completion of Installation (when exporter installs)  Last shipment for integral unit and no installation  Weighted average mid-point of shipment amounts (non-integral units)  Shipment (for single shipment)

12. Repayment Terms  Repayment Terms can now be offered for up to seven years for transactions greater than $350,000 (Contract Price)  Model Stipulates:  Equal Principal Payments  “Regular” Payments  Adherence to “Starting Point” Rules

13. Case Study  Exporter : Medical Export Inc. FL.  Buyer : Clinica Ltd. Brazil  Equipment : Tomography Equipment  Product : Ex-Im Credit Insurance  Amount : $1,390,000  Tenor : 7 years, first, 6 month from installation  Capitalized interest  Total Liabilities /Net Worth + 173%  Security – First priority security interest on equipment  Personal Guarantee of Owner, 50% corporate Gty

14. Solution 4: Long-Term Financing  Generally used for buyer financing of very large items ie., Capital Equipment, Medical Clinics & Hospitals  Over 5 year repayment or over $10 million  15% down payment; up to 85% financed  Financing can be accomplished through the following Ex-Im Bank products:  Lender loan guarantees  Direct Loans (few)

15. Just A Few Restrictions  Military Exports (exceptions apply)  Foreign Content  Restricted Countries (CLS)  Economic Impact  Shipping  Additionality

16. U.S. Content Policy—ST products  For Short-Term products, the product must have at least 51% US content to support the entire transaction  Products must be manufactured in and shipped from the U.S. (For pre-export, companies must be located in the U.S.)

17. Foreign Content Policy for MT and LT Financing Ex-Im Bank will support the following amounts:  If contract has no more than 15% foreign content, we will support 85% of the contract price  Otherwise, we will limit our support to the U.S. content  Note: the contract value and foreign content must exclude amounts not shipped from the U.S.

18. Restricted Countries We are open in all continents, with the exception of some countries  Country restrictions for political or economic conditions and Default Issues  Refer to the Country Limitation Schedule (CLS) www.exim.gov, under Country/Fee info www.exim.gov

19. For More Information To Continue This Conversation Call: Bill Rowland (202) 565-3471 Email: william.rowland@exim.govwilliam.rowland@exim.gov WEBSITE: www.exim.govwww.exim.gov Thank You For Your Participation