Transaction Supports Hundreds of U.S. Jobs in Texas
FOR IMMEDIATE RELEASE October 30, 2014
Office of Communications (202-565-3200)
WASHINGTON, D.C. - The Export-Import Bank of the United States (Ex-Im Bank) today announced its guarantee of a $21 million revolving loan facility by Cadence Bank to Jyoti Americas LLC for the export to Canada of lattice transmission towers to be constructed by U.S. workers in Conroe, Texas.
The 220,000 square-foot Jyoti Americas manufacturing plant already employs about 159 workers. As a result of this transaction, an additional shift of skilled workers will be added to the present workforce for this export production.
We're pleased to support both Jyoti's direct investment in America, and the jobs that open up when U.S. manufacturers export, said Ex-Im Bank Chairman and President Fred P. Hochberg. This transaction also illustrates how exporters like Jyoti Americas can get fast export credit through one of Ex-Im's delegated-authority lenders, Cadence Bank. Ex-Im's guarantee helped clinch the sale, and paved the way for more business and U.S. jobs.
Jyoti Americas LLC is wholly-owned subsidiary of Jyoti Structures, Ltd., India, which directly invested $41 million to establish a state-of-the-art manufacturing plant in Conroe. The Texas employees will source U.S.-produced steel to fabricate up to 54,000 metric tons annually. Jyoti Americas' customer in Canada requires electric transmission towers for the Labrador-Island Link LP, an element of the Lower Churchill Project which generates and distributes hydroelectric power to Canada's Atlantic provinces. Jyoti Americas will design, manufacture, and test eleven different types of high-voltage towers weighing a total 34,000 metric tons.
We are delighted to receive this support from Ex-Im Bank which paved the way for us to secure and smoothly execute this prestigious export to Canada, said Ashok Goyal, Joint Managing Director at Jyoti. With Ex-Im Bank's guarantee support along with Cadence Bank's working capital facilities, we look forward to many more such successes globally.
Cadence Bank is a Delegated Authority Lender with Ex-Im Bank;ithasover80branchesinTexasandfiveother statesinthesoutheastern U.S.
Being able to support the job growth of Texas is an enormous opportunity for Cadence Bank, and Jyoti's global structure made it a perfect candidate for the Export Working Capital Program, which issues standby Letters of Credit and guarantees sufficient working capital, said M.G. Shetty, senior vice-president for trade finance at Cadence Bank.
ABOUT EX-IM BANK:
Ex-Im Bank is an independent federal agency that supports and maintains 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 and export credit insurance, to promote the sale of U.S. goods and services abroad. Ninety percent of its transactions directly serve American small businesses.
In fiscal year 2013, Ex-Im Bank approved more than $27 billion in total authorizations. These authorizations supported an estimated $37.4 billion in U.S. export sales, as well as approximately 205,000 American jobs in communities across the country.
Small business exporters can learn about how Ex-Im Bank products can empower them to increase foreign sales by clicking here. For more information about Ex-Im, visit www.exim.gov.