Ex-Im Bank Approves $450 Million in Financing for Pemex To Support Exports From U.S. Small and Large Businesses
WASHINGTON, D.C.: The Export-Import Bank of the United States (Ex-Im Bank) has approved a total of $450 million in three long-term transactions to Petroleos Mexicanos (Pemex), Mexico's state-owned oil company, which will support more than $500 million of exports from small and large businesses throughout the United States. The financing repayment term is 10 years in all three transactions.
Ex-Im Bank approved a $200 million loan guarantee under a small-business facility that will support Pemex's purchases of goods and services from U.S. small businesses of 500 employees or fewer. The Bank estimates that, over time, approximately 52 percent of the transaction will support U.S. small-business exports. The guaranteed lender is JP Morgan Chase of New York, N.Y.
In a separate transaction, the Bank approved a $100 million loan guarantee to support Pemex's purchases of various U.S. goods and services to be used in the Burgos Basin gas development program in northeastern Mexico. The Bank estimates that approximately 27 percent of this transaction will support U.S. small-business exports. The guaranteed lender in this transaction is also JP Morgan Chase.
Ex-Im Bank also approved a $150 million direct loan to Pemex to support its purchases of various U.S. goods and services to be used in its Strategic Gas Program, which comprises 22 separate program areas across the Mexican states of Veracruz, Tabasco, Tamaulipas, Chiapas and Campeche, as well as offshore activities in the Gulf of Mexico.
Ex-Im Bank's financing for Pemex, our single largest borrower, helps U.S. companies in the oil and gas industries to create and sustain jobs in the United States. The small-business facility and other transactions enable U.S. companies of all sizes to tap the enormous opportunities of exporting to Pemex, said Ex-Im Bank Structured Finance Vice President Barbara O'Boyle.
U.S. exports supported under all three transactions are anticipated to be sourced from hundreds of small and large companies located in states that include but are not limited to Texas, Louisiana, Florida, Ohio, Pennsylvania, Illinois, Wisconsin, Minnesota, Oregon and Washington State. These exports consist mainly of engineering services, oil field equipment, offshore platforms, drilling and well services, and upgrade and rehabilitation services.
From 1998 to date, Ex-Im Bank has approved $8.8 billion in financing to support U.S. exports for Pemex's activities for a wide range of oil and gas exploration, development and processing projects.
In fiscal year 2008, Ex-Im Bank authorized a total of $14.4 billion in financing to support an estimated $19.6 billion of U.S. exports worldwide. The Bank authorized financing to support $1.5 billion of U.S. exports for oil and gas production projects.
Ex-Im Bank is the official export-credit agency of the United States. The independent, self-sustaining federal agency, now in its 75th year, helps to create and maintain U.S. jobs by financing the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export-credit insurance and direct loans. For more information, visit www.exim.gov.