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FINANCING SOLUTIONS FOR 2003 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW.

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Presentation on theme: "FINANCING SOLUTIONS FOR 2003 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW."— Presentation transcript:

1 FINANCING SOLUTIONS FOR 2003 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW

2 SSA INTRODUCTION MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW

3 INTRO - 3 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW + Cash + Letter of Credit OPTIONS

4 INTRO - 4 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW BENEFITS BRING NEW + Improved Cash Flow + Lower Interest Rates + Extended Terms + Establish Credit Record + Become Familiar With EX-IM

5 INTRO - 5 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW WHAT WE DO + Provide Export Financing Solutions – Short and Medium Term Insurance – Medium and Long Term Loan Guarantees – Structured and Project Finance

6 INTRO - 6 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW U.S. Trade -Sub-Saharan Africa

7 INTRO - 7 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW TRANSACTION PARTNERS Short Term Insurance Guarantee U.S Supplier EX-IM Bank African Buyer Payment Goods and Services Insurance Application

8 INTRO - 8 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW TRANSACTION PARTNERS Medium Term Insurance Guarantee US Supplier EX-IM Bank African Buyer Bank US African International Payment Goods & Services Loan Guarantee Application Financials

9 INTRO - 9 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW TRANSACTION PARTNERS Medium Term Insurance Guarantee US Supplier EX-IM Bank US African Int’l African Buyer Guarantor Bank or Corp. Loan Guarantee Application Goods & Services Payment Financials

10 INTRO - 10 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW FINANCING BENEFITS + Substitutes Full faith and guarantee of U.S.government + Substitutes Full faith and guarantee of U.S. government for that of the foreign buyer. Thus, all financing becomes domestic.

11 INTRO - 11 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW SPECIFICS OF CHARTER + Must cover U.S. goods + Do not compete with the private sector + Reasonable assurance of repayment Debt service ability Adequate capitalization

12 INTRO - 12 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW WHEN USE EX-IM BANK + Long Term Financing + Larger Transactions + Riskiest Transactions + Smallest Transactions

13 INTRO - 13 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW NEW TIMES / NEW VIEWS + We now see the huge potential in Africa + U.S. government will take credit and political risks + Many Africans in the U.S. wanting to sell goods to their homeland

14 INTRO - 14 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW U.S. exports to Africa $6 billion U.S. EXPORTS TO SSA IN 2002 Worldwide exports to Africa $88 billion 7%

15 INTRO - 15 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW U.S. Export Comparisons: 2000

16 INTRO - 16 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW CONGRESS INSTRUCTIONS + Develop U.S. minority and rural business + Support environmentally beneficial U.S. goods and services. + Support more U.S. exports to Sub-Saharan Africa.

17 INTRO - 17 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW CY 2002 Completed 127 transactions for $475 million in 18 countries in Sub-Saharan Africa

18 INTRO - 18 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW U.S. Ex-Im’s Products Make it easier for your U.S. supplier to provide you with the terms and financing you need to purchase U.S. goods and services.

19 INTRO - 19 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW WHAT CAN YOUR PRODUCTS AND SERVICES DO FOR ME? Success Story :Nigeria Ex-Im Bank has approved an $11 million medium-term guarantee to support the purchase of medical equipment, supplies and services by Yobe State and Nasarawa State in northern Nigeria from Adam & Associates International, Inc., Brookline, MA. The borrower on this transaction is Bank of the North. Riggs Bank N.A. is the guaranteed lender.

20 INTRO - 20 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW WHAT CAN YOUR PRODUCTS AND SERVICES DO FOR ME? Success Story:Kenya Barclays Bank International, NY received a final commitment for a 12-year comprehensive guarantee in the amount of $70,090,986 to support the acquisition by Kenya Airways Limited of two Boeing 737-700 aircraft, each equipped with two installed CFM International CFM56-7 engines and winglets.

21 INTRO - 21 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW WHAT CAN YOUR PRODUCTS AND SERVICES DO FOR ME? Success Story :Uganda Recently approved a medium-term comprehensive guarantee of $750,252 to support the sale of used heavy construction equipment from Atlas Mercantile, Inc., Silver Spring, MD, to General Standard Engineering, Ltd. (GSE) of Kampala, Uganda. This equipment will allow GSE to expand its road repair and construction business. Worldwide Equipment, Inc. of Houston, TX is the U.S. supplier. Riggs Bank NA is the guaranteed lender on this transaction.

22 INTRO - 22 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW Success Story: Gabon Edelweiss, Inc. is using an Ex-Im Bank short-term, multi- buyer policy for the sale of $50,000 worth of frozen meat to three companies in Gabon. Benin East West Bank will provide a loan for the sale of four used Kenilworth trucks to Societe Africaine de Commerce with the support of a $195,000 medium-term insurance policy from the Ex-Im Bank. WHAT CAN YOUR PRODUCTS AND SERVICES DO FOR ME?

23 INTRO - 23 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW  Provides sub-Saharan Africa with liberal access to the U.S. market.  AGOA provides duty-free treatment for more than 1,800 products.  Ex-Im Bank can help African manufacturers by supporting the financing of purchases of U.S. goods needed to take advantage of AGOA. (manufacturing equipment, U.S. fabric, yarn and thread for production of apparel) AFRICA GROWTH & OPPORTUNITY ACT AGOA

24 INTRO - 24 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW HOW TO APPLY + U.S. exporter or commercial lender submits application to Ex-Im Bank + Internet: http://www.exim.gov E-mail: eximafrica@exim.goveximafrica@exim.gov Maureen Scurry, Africa 202-565-3905


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