FOR IMMEDIATE RELEASE April 19, 2012
Jamie Radice (202-565-3200)
Washington, D.C. - The Export-Import Bank of the United States (Ex-Im Bank) today announced that the board of directors has approved $360 million in supply chain financing to benefit suppliers - many of them small businesses - of Navistar International Corporation (Navistar). Navistar is a manufacturer and marketer of medium and heavy trucks and mid-range diesel engines and is headquartered in Lisle, Illinois. “Ex-Im Bank's supply chain financing benefits Navistar's small business suppliers by ensuring that they are paid more quickly,” said Fred P. Hochberg, the chairman and president of Ex-Im Bank. “This product improves supplier liquidity and helps create and sustain American jobs in the process.”
“The Ex-Im Bank is an important tool that provides support for small businesses and exporters to capture business in new emerging markets and create American jobs, while also creating a level playing field for U.S. companies competing in the global marketplace,” said A.J. Cederoth, Navistar executive vice president and chief financial officer. “Support from Ex-Im Bank helps our small-business suppliers free-up much needed capital in support of Navistar's global growth efforts.”
Ex-Im Bank's supply chain finance guarantee program enables Navistar's suppliers to receive early payment of their accounts receivable that are due from the company in exchange for a small discount fee that is paid to the lender. Ex-Im Bank provides a 90 percent guarantee of the invoices while the lender bears 10 percent of the risk.
Under the Ex-Im program, approved lenders must have an existing supply chain finance program. Ex-Im Bank has set a target that at least 50 percent of the credit, by the end of the 12-month term, is extended to suppliers that meet the definition of a small business as defined by the U.S. Small Business Administration. The end products must be exportable and must meet Ex-Im Bank's requirements for U.S. content.
Ex-Im's supply chain finance guarantee product is designed to provide suppliers, particularly small businesses, with access to capital faster by allowing them to receive early payment, typically within days.
Navistar's guaranteed lenders are The Bank of Nova Scotia, located in Toronto, Canada and the Royal Bank of Scotland, located in Stamford, Connecticut.
About Ex-Im Bank:
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers $1.9 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 -- an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales -- also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $41 billion in U.S. export sales and approximately 290,000 American jobs in communities across the country. For more information, visit www.exim.gov.