Ex-Im Bank Authorizes $150 Million in Export Financing for Energy Projects in Latin America
WASHINGTON, D.C. - More than a $150 million worth of American-made energy equipment will head to Uruguay and Mexico because of transactions approved this week by the Export-Import Bank of the United States (Ex-Im Bank). The Bank approved a $78.6 million direct loan to Abengoa (MCE: ABG.B), a company in Seville, Spain, that applies technology solutions for sustainable development in the energy and environment sectors. The Bank also approved a $73.6 million direct loan to Palmatir S.A., a 50 MW wind farm in Cuchilla de Peralta, Uruguay, which is owned by Abengoa.Approximately 510 American jobs will be supported from these two transactions.
"These two transactions demonstrate the strength of American energy technology and highlight the importance of this growing sector," said Ex-Im Bank Chairman and President Fred P. Hochberg. "In order for the U.S. to compete globally, our companies must continue to produce cutting-edge energy technology. President Obama set an ambitious goal of doubling U.S. exports in five years, and these types of projects will help us meet that goal in 2015."
Uruguay - Palmatir S.A.
The Palmatir S.A. loan is Ex-Im Bank's first wind transaction in Uruguay, and it is the largest in the country's history from the Bank. Ex-Im's loan will support the purchase of 25 wind turbines from Gamesa Technology Corporation (Gamesa), which has its North American headquarters in Trevose, Pa. The loan will also help to finance ancillary services and local costs in Uruguay associated with construction of the wind farm. The project will feature Gamesa's G90-2.0 MW turbines. Gamesa began manufacturing wind turbines in the United States in 2006, and it has supplied more than 3,900 megawatts since its arrival in the U.S. The loan will support approximately 160 jobs at Gamesa, and this will be company's first project in Uruguay.
In April 2011, Chairman Hochberg joined President Obama for a tour of Gamesa's factory in Fairless Hills, Pa. Last year, Gamesa received Ex-Im Bank's "Renewable Energy Exporter of the Year" award for its work on a 102-megawatt wind farm in Honduras.
"Exports equal jobs, and Ex-Im Bank provides great mechanisms for facilitating our exports," Gamesa North America Chairman David Flitterman said. "The strong demand for our Pennsylvania-manufactured wind turbines in Central and South America provides lasting benefits to our local economy. This creates additional benefits to our supply chain that provides the materials and services needed in the manufacturing process."
Mexico - Abengoa S.A.
The Bank's loan to Abengoa S.A. will support the purchase of three GE 7FA gas turbines and two generators for the use in the 642 MW Centro Power Project in Morelos, Mexico. The American exports will be used to help build a power plant for Mexico's public electric utility. Approximately 350 jobs at GE are supported by the Bank's financing.
According to the customer, Ex-Im support for this project was needed due to foreign competition and limited availability of long-term loans.
About Ex-Im Bank
Ex-Im Bank is an independent federal agency that creates and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years (from Fiscal Year 2008), Ex-Im Bank has earned for U.S. taxpayers nearly $1.6 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 $35.8 billion in total authorizations in FY 2012 - an all-time Ex-Im record. This total includes more than $6.1 billion directly supporting small-business export sales - also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $50 billion in U.S. export sales and approximately 255,000 American jobs in communities across the country. For more information, visit www.exim.gov.