EX-IM BANK SUPPORTS U.S. EXPORT TO TURKISH POWER PLANT
The Export-Import Bank of the United States (Ex-Im Bank) approved a $14.8 million long-term guarantee, co-financed with Norway's official export credit agency GIEK (Garanti-Instituttet For Eksportkredit), to support the $12.9 million sale by U.S. and Norwegian companies of power plant equipment to Turkey. The guarantee covers financing fees and project-related costs in the buyer's country in addition to the sale price.
GE Packaged Power, Inc., Houston, TX, and other U.S. suppliers are selling a LM6000 gas turbine generator set and related equipment to the Bis Enerji Power Plant, Bursa, Turkey, to enable the buyer to increase its electrical power generation capacity by 20%. U.S. suppliers include The Trane Company, Inc., LaCrosse, WI, and WahlcoMetroflex, Inc., Lewiston, ME.
The guaranteed lender on the transaction is First International Bank NA, Hartford, CT. GIEK's Board has agreed to reinsure Ex-Im Bank for $5.5 million of the total financed amount to cover the Norwegian portion of exports under the transaction. It is the second co-financing by Ex-Im Bank with GIEK.
Cooperative efforts with fellow export credit agencies open up opportunities for U.S. exporters to participate in multi-sourced international transactions, said Ex-Im Bank Vice Chairman Eduardo Aguirre, Jr. In addition, this one-stop-shop approach to financing makes it easier for foreign customers such as Turkey to obtain credit.
Ex-Im Bank's co-financing program allows the buyer to submit one application but obtain financing from multiple export credit agencies.
Turkey is one of Ex-Im Bank's largest markets, with exposure totaling approximately $3.3 billion. In fiscal year 2002, Ex-Im Bank authorized approximately $282 million in financing in support of U.S. exports to Turkey.
Ex-Im Bank is an independent federal government agency that helps finance the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loans, guarantees, and insurance. Worldwide, Ex-Im Bank authorized financing to support approximately $13 billion of U.S. exports in fiscal year 2002.