EXIM Board of Directors Approves $54.9 Million Loan Guarantee Supporting Aircraft Engine Exports to Turkish Airlines
WASHINGTON - On May 20, the Board of Directors of the Export-Import Bank of the United States (EXIM) approved a $54.9 million guarantee of a loan from BNP Paribas, S.A., to support the export of a GEnx spare engine and two GEnx spare propulsors from GE Aviation to Turkish Airlines (Turk Hava Yollari, A.O.).
The transaction is supporting an estimated 300 U.S. jobs at GE Aviation's manufacturing facility in Peebles, Ohio, as well as related components assembly in Batesville, Indiana, and in Durham, North Carolina.
EXIM's support fills the gap in aviation finance that has widened during the COVID-19 pandemic. The loan would not have been available in the private sector without EXIM's guarantee, which will enable the deliveries of the GE engines to be completed in 2021.
"Today's board action demonstrates EXIM's ability to fill a financing gap on behalf of a U.S. manufacturer in an industry that has been hit especially hard by the pandemic. EXIM is committed to supporting America's exporters as the global economy begins to recover, while remaining committed to strong fiscal responsibility in our portfolio," said EXIM Acting First Vice President and Vice Chairman James C. Cruse.
"The action the Board of Directors took today achieves three important functions of EXIM: providing financing when private-sector options are not available, leveling the playing field for U.S.-based exporters, and sustaining U.S.-based jobs," said EXIM Board Member and former Chairman of the House Financial Services Committee Spencer Bachus. "As the world begins to open up and companies recover from the effects of the pandemic, EXIM continues to fulfill our mission by supporting U.S. businesses and the people they employ."
"EXIM is needed to enable GE's Ohio-manufactured exports to go forward during this critical time in the aviation industry. This is what we do. We provide help in a financial crisis to assist America's exporters and their workers when the private sector cannot or will not offer financing without our support," said EXIM Board Member Judith D. Pryor.
GE Aviation, headquartered in Evendale, Ohio, is an operating unit of GE (NYSE: GE) and a world-leading provider of jet and turboprop engines, as well as integrated systems for commercial, military, business, and general-aviation aircraft.
The Export-Import Bank of the United States (EXIM) is the nation's official export credit agency with the mission of supporting American jobs by facilitating U.S. exports. To advance American competitiveness and assist U.S. businesses as they compete for global sales, EXIM offers financing including export credit insurance, working capital guarantees, loan guarantees, and direct loans. As an independent federal agency, EXIM contributes to U.S. economic growth by supporting tens of thousands of jobs in exporting businesses and their supply chains across the United States. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of U.S. debt. Learn more at www.exim.gov.