FOR IMMEDIATE RELEASE October 6, 2004
MARIANNA OHE (202) 565-3200
WASHINGTON, D.C.- The Export-Import Bank of the United States (Ex-Im Bank) today approved a $121.7 million long-term loan guarantee to support the export by General Electric Co., Inc., Erie, Penn., of 200 locomotive kits to Kazakhstan's state-owned national railway, Kazakhstan Temir Zholy (KTZ).
The export sale will maintain or create approximately 575 jobs at GE's manufacturing facilities in Erie and Grove City, Penn., and at GE subsuppliers in Arizona, Georgia, Illinois, Indiana, Michigan, New York, Pennsylvania and Tennessee.
This transaction supports high quality U.S. jobs as well as Kazakhstan's infrastructure development, said Ex-Im Bank Chairman Philip Merrill. We are pleased to continue support for KTZ's modernization of its locomotive fleet.
Workers building locomotive modernization kits for Kazakhstan's national railway at GE's plant in Erie, PA.
KTZ will use the kits to refurbish 100 of its 18-year-old model 2TE10 locomotives, extending their useful lives for another 15-20 years. The railway is undertaking the modernization to meet the increased demand for freight and passenger traffic created by economic development.
A locomotive that was refurbished by Kazakhstan workers with technical assistance from GE. The modernization kits will extend the machinery's life by 15-20 years.
The financing transaction is Ex-Im Bank's second with KTZ. A $33.1 million Ex-Im Bank guarantee backed the sale of 54 GE kits to KTZ in December 2003.
The transaction is structured as an asset-based financing, with the locomotives serving as collateral. KTZ is the first non-bank government-owned company in Kazakhstan to receive Ex-Im Bank-supported financing without a sovereign guarantee.
The guaranteed lender on the transaction is ABN Amro Bank N.V., Chicago, IL.
Ex-Im Bank this year marks its 71st year of helping finance 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 2003, Ex-Im Bank, an independent federal agency, authorized financing to support $14.3 billion of U.S. exports worldwide. For more information on Ex-Im Bank visit //www.exim.gov.