FOR IMMEDIATE RELEASE February 16, 2011
Marianna Ohe (202-565-3200)
WASHINGTON, D.C. - The Dominican Republic (DR) will use U.S. equipment and services to build a 44-mile road linking Santo Domingo to the country's major eastern cities, promoting tourism to several resorts, backed by a $34.5 million loan guarantee from the Export-Import Bank of the United States (Ex-Im Bank).
Odebrecht Global Sourcing Inc., Miami, Fla., will export goods and services from small and large U.S. suppliers to Autopista del Coral S.A. (a company wholly-owned by Constructora Norberto Odebrecht in DR). Autopista is responsible for all construction, installation, integration and training services related to the project. The DR Ministry of Finance, the borrower, provided its full faith and credit to obtain the export credit, and is responsible for repayment of the financing to the guaranteed lender, BNP Paribas.
This financing will contribute to the Dominican Republic's infrastructure expansion and economic growth, while supporting American jobs, said Ex-Im Bank Chairman and President Fred P. Hochberg. The transaction will also likely lead to follow-on business for U.S. exporters with Odebrecht in Latin America, the Caribbean, and Africa.
The Ex-Im Bank guarantee coupled with BNP's financing allows Odebrecht to tap into a new funding source, which is particularly important in times when the commercial market has contracted, said Vinicio Fonseca, Odebrecht director of Export Finance. The Autopista del Coral Project is Odebrecht's pioneer project for U.S. Ex-Im Bank support.
Juvenalito Gusmâo Jr., Odebrecht project director for the Autopista del Coral Project, said, Given the fact that U.S. goods would have to be purchased for the project, partnering with U.S. Ex-Im for the export credit has allowed the project to obtain a lower rate than with other means of financing. This way, Odebrecht is able to deliver a differentiated solution for its client, the DR Ministry of Public Works and Communications, thus adding value to its relationship.
Odebrecht Global Sourcing is a company wholly-owned by Construtora Norberto Odebrecht, S.A., Brazil's largest construction company. Its role is to source U.S. goods for projects of Construtora Norberto Odebrecht all over the world.
Ex-Im Bank, an independent, self-sustaining federal agency, helps create and maintain American jobs by filling gaps in export financing and strengthening U.S. export competitiveness.
During the first quarter of Fiscal Year 2011, the Bank approved $8 billion in total financing authorizations, supporting nearly $9.3 billion in export sales. The sales in the first quarter in turn support approximately 66,000 American jobs in communities across the country. During the FY2011 first quarter small business authorizations rose over 22 percent, and new customer volume rose 55 percent, over the same period of 2010. In Fiscal Year 2010 overall, the Bank authorized a record high of approximately $24.5 billion in loans, guarantees and insurance, supporting about 230,000 American jobs. For more information on Ex-Im Bank, visit www.exim.gov.