Supports Hundreds of Aerospace Jobs in California
FOR IMMEDIATE RELEASE May 12, 2011
Linda Formella (202) 565-3200
WASHINGTON, D.C. -- The Export-Import Bank of the United States (Ex-Im Bank) is providing a $700 million long-term direct loan to finance the sale of satellites by Boeing Space and Intelligence Systems in El Segundo, Calif., to Inmarsat, a global provider of mobile satellite communications services to the maritime industry.
The transaction is the largest satellite financing in Ex-Im Bank's history. The Bank's support helped Boeing Space and Intelligence Systems win the contract over competition backed by a foreign export-credit agency.
Ex-Im's 8.5-year, fixed-rate loan will finance three Boeing Ka-band 702HP satellites for the Inmarsat-5 project and related launch insurance. The Inmarsat-5 satellites will operate in geosynchronous orbit with flexible global coverage and will enable Inmarsat to meet the growing demand for mobile satellite services in the maritime and energy sectors.
The United States is a world leader in aerospace technology, and this sector provides employment for thousands of Americans. Our financing of this sale will help Boeing and its many small-business suppliers maintain jobs in California and around the country, said Ex-Im Bank Chairman Fred P. Hochberg.
Boeing Space and Intelligence Systems is a leading manufacturer of geostationary satellites. Its factory, known as the Satellite Development Center, is headquartered in El Segundo, Calif. Boeing manufactures a range of communications satellites designed to support mobile communications, weather reporting, global positioning and military communications. More than two dozen satellites are in production at any given time. The company employs approximately 5,000 workers at its El Segundo facility.
Since 1979, London-based Inmarsat has been providing voice and high-speed data communications to governments, enterprises and other organizations, with a range of services that can be used on land, at sea or in the air. The company's services are delivered through a global network of more than 400 distribution partners and service providers in 100 countries.
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. 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.
By charging fees and interest on all loan-related transactions, Ex-Im Bank is self-sustaining and is able to cover all operation costs and potential losses while also producing revenue. The Bank has generated $3.4 billion for U.S. taxpayers over the past five years.
During the first half of fiscal year 2011, the Bank approved $13.4 billion in total financing authorizations, supporting $15.9 billion in U.S. export sales. These sales will support more than 115,000 American jobs in communities across the country. This six-month authorization figure is the highest in Ex-Im Bank's history.
In fiscal year 2010, Ex-Im Bank authorized a record high of approximately $24.5 billion in loans, guarantees and insurance (including more than $5 billion in authorizations for small businesses), supporting an estimated 230,000 American jobs.
For more information, visit Ex-Im Bank's Web site at www.exim.gov.