Infrastructure

For the first time in history, a worldwide “middle class” is taking shape. And American exporters are poised to take advantage of this development. According to the Brookings Institution, there are currently two billion people across the globe whose socioeconomic status can be classified as middle class. By 2030, that number is expected to more than double to 4.9 billion.

The implications of this social and economic change are staggering. To accommodate larger and more prosperous populations, roads and bridges must be built, power plants constructed, telecommunications satellites launched, and facilities put in operation to provide clean water and other needs. As world living standards continue to rise, vast opportunities are created for U.S. companies and their employees to provide the goods and services to meet the growing global demand for infrastructure.

Consistent with the World Bank and OECD, Ex-Im Bank defines infrastructure to include the large physical networks necessary for the functioning of commerce, such as highways, railroads, power generation plants, pipelines, satellites and radio transmission systems. Infrastructure also includes the goods and services essential to maintaining a country’s health, cultural and social standards, including educational and healthcare equipment and services. Also included in the Bank’s definition of infrastructure are transportation components, such as aircraft and locomotives, and equipment and services related to mining industries.

In each of these categories, Ex-Im Bank assists U.S. exporters in meeting the world’s growing need for infrastructure. Through this support, the Bank is also fostering good-paying manufacturing and technology-based services jobs in the United States.

In FY 2012, Ex-Im Bank

• Authorized $21.5 billion to support U.S. exports in infrastructure projects, including large transportation equipment. This financing represented 60 percent of total authorizations for FY 2012 and is roughly equivalent to last year’s figure.

• Approved a historic high of $12.6 billion for long-term structured and project-finance transactions – a 46 percent increase over the previous record of $8.6 billion set in FY 2011. The FY 2012 financing is supporting American exports for a range of infrastructure projects, including oil and gas development, power generation, mining projects, liquefied natural-gas production and telecommunications.

• Authorized a record-breaking $1.4 billion to finance exports of U.S.-manufactured telecommunications satellites including the Bank’s largest satellite authorization in history – an increase of nearly 8 percent over the previous record of $1.3 billion in FY 2011.

• Notable FY 2012 satellite transactions include supporting the export of three satellites and related equipment from Boeing Space and Intelligence Systems to the Mexican government for the MEXSAT regional mobile satellite system. The Bank also provided its first financings of satellite exports from Lockheed Martin Space Systems Co. to NewSat Ltd. in Australia and the government of Vietnam, respectively.

• Approved $12.2 billion in financing to support the export of U.S.-made aviation-related goods and services, including approximately $600 million in support of U.S.-manufactured business aircraft and helicopters. The Bank approved $11.6 billion in financing to support the export of 154 U.S.-manufactured commercial aircraft to a total of 22 airlines and seven aircraft-leasing companies in 21 different countries, including first-time support for aircraft exports to Mongolia.

• Supported U.S. locomotive exports to Mexico and Canada through authorizations totaling approximately $120 million.

• Provided more than $4.5 billion authorizations to support mining projects, including $1.2 billion for oil-and-gas exploration and development projects of Mexico’s national oil company, Pemex.