Deal Benefits Boeing, Delta, Honeywell and Others
FOR IMMEDIATE RELEASE June 21, 2012
Phil Cogan or Jamie Radice (202-565-3200)
Washington, D.C. - The board of directors of the Export-Import Bank of the United States (Ex-Im Bank) yesterday approved two final commitments aggregating $171 million in export financing for Aerovias de Mexico S.A. de C.V. (Aeroméxico). Aeroméxico is Mexico's largest airline and a founding member of the SkyTeam Alliance. This transaction effectively triples Ex-Im support for Mexican aviation companies purchasing goods and services from U.S. companies.
The final commitments approved by Ex-Im Bank will support the export to Aeroméxico of Boeing 737 passenger aircraft, as well as various goods and services to be provided by a variety of U.S. exporters. The latter includes the maintenance, repair and overhaul operations division of engines and auxiliary power units by Delta TechOps in Atlanta, Ga. and Honeywell in Phoenix, Arizona. Delta TechOps is the maintenance repair and overhaul operations unit of Delta Airlines (Delta), also a member of the SkyTeam Alliance.
Earlier this month, Delta invested $65 million in Aeroméxico. As a result, Delta now has a 4.17% ownership interest in, and a seat on the board of directors of, Aeroméxico.
I am pleased that this transaction will help Boeing, Delta, Honeywell and other U.S. companies create and sustain American jobs, said Fred P. Hochberg, the chairman and president of Ex-Im Bank. American workers produce the best products and services - and airplanes - in the world, and we are committed to ensuring that our financing support helps our companies remain competitive.
Ex-Im Bank's support of Grupo Aeroméxico has been vitally important and played a key role in our fleet renewal process that we started a decade ago, said Andrés Conesa, CEO of Aeroméxico. Through the loan facility it approved yesterday and with the renewal of the CGF, Ex-Im Bank has demonstrated that we have a valuable strategic partner, which will help us achieve our expansion plans and benefit our passengers and stockholders.
In order to provide Aeroméxico with a natural currency hedge, the final commitments are structured as Mexican Peso denominated Ex-Im Bank guaranteed loans. The guaranteed lenders will be Banco Nacional de México (a 100% owned subsidiary of Citibank) and HSBC.
The other airline members of the SkyTeam Alliance besides Delta and Aeroméxico are: Aeroflot, Air Europa, AirFrance, Alitalia, China Airlines, China Eastern, China Southern, Czech Airlines, Kenya Airways, KLM, Korean Air, Saudia, Tarom, and Vietnam Airlines.
Mexico is Ex-Im Bank's largest single market, which supports thousands of U.S. jobs. At the end of Fiscal Year 2011 (September 30, 2011) Ex-Im's exposure in Mexico was over $8.3 billion.
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.