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Co-Financing Frequently Asked Questions

What are "one-stop-shop" co-financing arrangements?

• "One-stop-shop" arrangements offer administrative ease to foreign buyers seeking a single financing package for the whole deal when an export sale transaction involves sourcing from more than one country (rather than, for example, an Ex-Im Bank guarantee of a loan for the U.S. procurement and an ECGD guarantee of a separate loan for the U.K. procurement).
• "One-stop-shop" arrangements also reduce the number of parties with whom the buyer/borrower will deal, and thus result in one loan agreement, one fee, and one set of disbursement and claims procedures.

How does it work?

• The location of the Main Contractor and/or the country with the largest share of the sourcing generally will determine which agency will be the Lead ECA. Behind the scenes, the Lead ECA will ask the Follower ECA if it wishes to cover its portion of the exports.
• If the Follower ECA agrees, the Lead ECA provides cover for the whole deal on its usual terms under one loan agreement and will seek a financial commitment from the Follower ECA.
• If one ECA is prohibited from supporting business in the buyer's country, then a "one-stop-shop" co-financing arrangement cannot be offered.
• Each ECA reserves the right to approve or deny an application for support based on its own evaluation of the transaction.

Are additional fees imposed?

• Ex-Im Bank will use a case-by-case pricing analysis for all co-finance transactions.
• If the premium rate of the ECAs differ, the ECAs can agree that the premium be blended into one rate.

Does it take longer?

• No. Since only a single application and a single set of credit documents will be required, the overall time and effort to conclude a "one-stop-shop" transaction should be substantially reduced, compared to arranging financing under two separate facilities with two ECAs.
• At the application stage, it will take a few days for the Lead ECA to contact and receive a response from the Follower ECA as to whether it is willing to cover its portion of the exports.
• Once contract negotiations are at an advanced stage, a commitment from the Follower ECA is required before the Lead ECA can document the transaction and issue its cover. These processes will be carried out simultaneously with the ordinary review and approval process of the Lead ECA and are not expected to result in material delays.

What about insurance coverage?

• Ex-Im Bank has years of experience in processing reinsurance transactions.

For information on co-financing transactions and case-specific inquiries, contact the Co-financing Coordinator at 202.565.3612 (or donna.schneider@exim.gov). For information on the co-financing agreements and ECA relations, call the Policy and Planning Division (Isabel.galdiz@exim.gov) at 202.565.3763.

March 2005