EX-IM BANK SUPPORTS $35 MILLION U.S. EXPORT TO ALGERIA INVOLVING HUNDREDS OF U.S. SUPPLIERS
The Export-Import Bank of the United States (Ex-Im Bank) is providing a $32 million medium-term credit guarantee facility to support the sale of $35 million of equipment and services by various U.S. companies to Algerian buyers. Caterpillar Inc., Peoria, IL, has won a $7 million order, which will be financed under the facility, for tractors, trucks and other equipment to be used by three state-owned Algerian cement companies. Caterpillar said the export sale would support jobs at Caterpillar manufacturing facilities as well as hundreds of U.S. suppliers.
Banque Exterieure d'Algerie (BEA) SPA, Algiers, the largest of Algeria's five state-owned commercial banks, is the borrower and primary source of repayment on the transaction. Societe Generale, New York, NY, is the guaranteed lender.
I am delighted to support U.S. exports to this important African market. We believe the credit facility will benefit both countries, contributing to Algeria's economic growth and helping to sustain jobs at U.S. businesses large and small, said Ex-Im Bank Chairman James A. Harmon.
Ed Rapp, Caterpillar's vice president of marketing for Europe, Africa, and the Middle East, said, Ex-Im's support will facilitate the sale of 28 machines in this highly competitive and growing market that would not have gone forward without Ex-Im's support. Ex-Im's assistance not only helps support export-related jobs at Caterpillar, but also at hundreds of suppliers serving our manufacturing facilities.
The products will be manufactured at Caterpillar's Illinois facilities in East Peoria, Decatur, and Aurora. Caterpillar plants involved in the export sale use hundreds of U.S. suppliers from around the country, including many small businesses, to produce the type of equipment going to Algeria.
Caterpillar is the world's leading manufacturer of construction and mining equipment, forestry equipment, diesel and natural gas engines and industrial gas turbines. The company posted 2000 sales and revenues of $20.18 billion.
Ex-Im Bank is an independent U.S. government agency that helps finance the sale of U.S. exports primarily to emerging markets throughout the world, by providing loans, guarantees, and insurance. Ex-Im Bank supported $15.5 billion in U.S. exports in fiscal year 2000.