FOR IMMEDIATE RELEASE September 29, 1996
Linda Formella (202) 565-3200
The Export-Import Bank of the United States (Ex-Im Bank) has authorized $620 million in project financing for two separate export transactions by Overseas Bechtel, Inc., USA, and Fluor Daniel Corporation, both of Houston, Texas, to Trinidad and Tobago and Argentina, respectively. The authorizations bring Ex-Im Bank's total authorizations for project financing in fiscal 1996 to $1.7 billion.
These transactions demonstrate the great partnership between Ex-Im Bank and commercial lenders in project finance, said Ex-Im Bank Project Finance Vice President Dianne Rudo. In both cases, Ex-Im Bank is involved only where the Bank is needed, offering political risk only guarantees that will enable the commercial financing to go forward.
- Atlantic LNG Project, Natural Gas Liquefaction Plant, Trinidad and Tobago - Ex-Im Bank approved $391.4 million in project financing to support the sale of equipment and services by Overseas Bechtel, Inc., USA, to Atlantic LNG Company of Trinidad and Tobago, which will build, own, and operate a natural gas liquefaction plant to be located at Point Fortin on the west coast of the island of Trinidad. Bechtel International, Inc., will be responsible for the local onshore work associated with the project. Ex-Im Bank's support consists of a political risk only guarantee of loans made by commercial lenders for $391.4 million.
- Alumbrera Mining Project, Argentina - Ex-Im Bank has authorized $228.7 million in project financing to support the sale of U.S. equipment and services to Minera Alumbrera Limited (MAA), which has contracted Fluor Daniel Corporation of the United States to design, develop, procure, and construct a porphyry copper and gold mine and related refining and transportation facilities to be located in the Province of Catamarca in northwest Argentina. The project is anticipated to produce approximately 172,000 tons of copper and 546,000 ounces of gold, making the project the largest gold mine in South America. Ex-Im Bank`s support is a political risk only guarantee of commercial loans of $228.7 million.
With limited recourse project finance, repayment is based on project revenues rather than on a guarantee of the debt from the host country government. Demand for this financing in emerging markets has soared in recent years due to privatization, the need to reduce sovereign debt, and economic growth in these markets. In fiscal year 1995, Ex-Im Bank authorized over $2 billion in project financing to support U.S. exports to infrastructure projects.
Ex-Im Bank is an independent government agency that helps finance and promote the sale of U.S. goods and services around the world.