Banco Bilbao Vizcaya Argentaria, Wells Fargo Bank Join
WASHINGTON, D.C. - Banco Bilbao Vizcaya Argentaria S.A. (BBVA) and Wells Fargo Bank, N.A., New York, N.Y., now can expand support and reduce transaction turnaround time for U.S. small-business exporters. The two banks have been approved by the Export-Import Bank of the United States (Ex-Im Bank) to be eligible lenders under its Medium-Term Delegated Authority Program.
As MTDA lenders, the lending institutions can increase use, and speed approval, of Ex-Im Bank medium-term guarantees which support commercial loans for foreign buyers of U.S. capital goods such as machinery and equipment. The program is available to U.S. exporters large and small.
We are delighted to help these banks streamline their customers' access to Ex-Im medium-term loan guarantees, said Ex-Im Bank Chairman and President Fred P. Hochberg. The appeal of the MTDA program is growing, and we encourage more lending institutions to join.
Undoubtedly, this delegation marks another milestone in BBVA's relationship with U.S. Ex-Im Bank, said Nick Shaw, head of Structured Trade Finance, BBVA. We are confident that BBVA, with our vast presence in the Sunbelt region of the USA and our extensive network in Latin America, will make good use of this vote of confidence by Ex-Im Bank and will help achieve the export needs of our American clients.
We are very proud that Ex-Im Bank has provided Wells Fargo with delegated authority under this program, and are excited to use it to support financing related to U.S. exports of goods and services into the emerging markets, said Norman Buchbinder, who is senior vice president and regional sales manager for Wells Fargo in their International Credit Products Group.
Hochberg noted that MTDA lender Northstar Trade Finance, Inc., Houston, Texas, has approved 14 transactions under the program. A $10 million medium-term Northstar transaction with Chinook Sciences LLC, Cranford, N.J., enabled this small business to sell equipment and technology to Turkey to build an innovative plant that recycles metal and in the process recovers gas and produces electricity.
Under the MTDA program, approved lenders have delegated authority to underwrite and authorize Ex-Im Bank-guaranteed medium-term transactions without prior Ex-Im Bank review and approval. In each transaction, the lender will be required to share the credit risk by retaining 10 percent of the commercial risk but will also retain 10 percent of the Ex-Im Bank exposure fee for large business transactions. Transactions involving small-business exporters or small-business suppliers will be eligible for increased Ex-Im Bank risk coverage, and the lender's commercial-risk retention will be reduced to 8 percent.
Loans approved under the program may have repayment terms of two to five years. Transactions requiring a higher degree of specialized judgment, such as those involving complex financing, environmental or economic-impact analysis, may be excluded. Excluded transactions may be submitted for consideration under Ex-Im Bank's standard medium-term guarantee program.
Interested lenders may contact Tom Fitzpatrick, senior relationship manager in the Bank's Trade Finance Division, at (202) 565-3642.
Ex-Im Bank, an independent, self-sustaining federal agency, helps create and maintain American jobs by filling gaps in export financing and strengthening U.S. export competitiveness. In fiscal year 2010, the Bank authorized a record high of approximately $24.5 billion in loans, guarantees and insurance supporting about 230,000 American jobs. For more information on Ex-Im Bank, visit www.exim.gov.