FOR IMMEDIATE RELEASE April 15, 2008
Linda Formella (202) 565-3200
WASHINGTON, D.C.: The Export-Import Bank of the United States (Ex-Im Bank) today approved a $29.4 million long-term loan guarantee to support multiple exports of U.S. medical, building and office equipment and services for the construction of Bhopal Medical College in Bhopal, India. The transaction was structured under Ex-Im Bank's Medical Equipment Initiative and is the first to be authorized under the Bank's $2.2 billion India Infrastructure Facility that supports U.S. exports to Indian projects in sectors such as power and renewable energy generation, oil and gas development, small aircraft, airport development and health care.
Ex-Im Bank's financing support for the Bhopal Medical College Trust is guaranteed by Punjab National Bank in New Delhi, one of eight Indian financial institutions participating in the India Infrastructure Facility. The facility enables the Indian banks to provide their guarantees, thereby expediting processing of Ex-Im Bank-backed medium-term and long-term financing for Indian buyers of U.S. exports. Each financial institution has an underlying pre-approved credit line of $50 to $250 million. Financing provided under the facility is denominated in U.S. dollars.
Ex-Im Bank is pleased to work with Punjab National Bank to support this export of American medical equipment and services to India, said Ex-Im Bank Chairman and President James H. Lambright. We anticipate that this transaction will be the first of many in our partnership with major Indian lenders under this facility, providing mutual benefits for U.S. exporters and developers of India' infrastructure.
U.S.-produced equipment and related services are being provided by JQ American Corp., a small business in Hayward, California. U.S. suppliers under the contract include, among others: Siemens Healthcare Diagnostics Inc. in Deerfield, Il.; GE Medical Systems Inc. in Dallas, Texas; Hill-Rom Company Inc. in Batesville, Ind.; Varian Medical Systems Inc. in Palo Alto, Calif.; and Precision Medical Inc. in Northhampton, Pa.
Ex-Im Bank's support has facilitated the largest deal in our company's history, said JQ American Director and CEO Jamal Qureshi. This transaction will support jobs at our company and at our U.S. suppliers, and it will lead to future business for us. It will also help the people of Bhopal and the surrounding area to have access to top-quality health care.
The Bhopal Medical College will be located on a 30-acre campus in Bhopal, the capital of the Indian state of Madhya Pradesh. The college will offer a five-year degree program and will instruct 750 students at full capacity. The project includes construction of the medical college, a 750-bed hospital, housing for faculty and students, an administrative building, an auditorium, a laboratory and a sewage treatment facility.
Ex-Im Bank is the official export-credit agency of the United States. The independent, self-sustaining federal agency, now in its 74th year, helps 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.
In fiscal year 2007, Ex-Im Bank authorized $12.6 billion in financing to support an estimated $16 billion of U.S. exports worldwide. The Bank approved more than $1.4 billion in financing for U.S. exports to India, including $500 million for U.S. equipment and services to the Reliance petroleum refinery project. For more information, visit www.exim.gov.