Will Support an Estimated 500 U.S. Jobs with 33 Potential U.S. Businesses in California, Florida, Illinois, New York, Ohio, Oklahoma, Louisiana, Massachusetts, Minnesota, Pennsylvania, Texas, and Wisconsin
FOR IMMEDIATE RELEASE August 6, 2020
Office of Communications (202) 565-3207
WASHINGTON – The Export-Import Bank of the United States (EXIM) Board of Directors today unanimously approved a $75 million Credit Guarantee Facility (CGF) for YPF S.A. (YPF), a leading energy company headquartered in Buenos Aires, Argentina. With the addition of the estimated financed EXIM exposure fee of $7.9 million, the total amount of the agency’s financing is $82.9 million. The proceeds of the CGF will be used by YPF for ongoing capital expenditure in support of its upstream and downstream activities, including equipment, materials, and services exported by numerous U.S. companies. The guaranteed lender is Bank of America.
In their application, YPF identified 33 potential U.S. businesses in California, Florida, Illinois, New York, Ohio, Oklahoma, Louisiana, Massachusetts, Minnesota, Pennsylvania, Texas, and Wisconsin, from whom YPF may purchase U.S.-made equipment. Currently, 15 of the possible exporters for the transaction qualify as small businesses based on the U.S. Small Business Administration’s standards. The transaction also is expected to support an estimated 500 U.S. jobs in the petroleum equipment and services industry, which, like so many others, has been adversely impacted by the COVID-19 pandemic.
“EXIM has historically played an important role during economic recoveries, and today is no exception. The unanimous Board action authorizing a credit guarantee facility will support U.S. manufacturers and hundreds of American jobs in a critical sector,” said EXIM President and Chairman Kimberly A. Reed.
“EXIM’s role is to take on reasonable risk in support of American exports and jobs,” said EXIM Board Member Judith D. Pryor. “While the coronavirus pandemic exacerbates market liquidity challenges and disrupts demand, EXIM financing can be an important tool in ensuring American exports, such as those from as many as 12 states supported by this transaction, get to foreign markets.”
As part of EXIM’s standard interagency review process, the U.S. Department of Commerce voiced their support for today’s transaction, noting that:
- The United States is the number one supplier for YPF;
- Several of the U.S. products at stake in this transaction enable YPF to continue to increase efficiency; and
- YPF has remained resilient in spite of the drop in crude prices.
In order to facilitate high volume sales of capital goods and related services from multiple U.S. exporters, EXIM offers its medium-term CGF, which is funded by private-sector lenders. Credit guarantee facilities are lines of credit between a funding bank and a foreign obligor. CGFs are not project-specific but are utilized to support exports of U.S. goods and services that are purchased and used in the foreign buyer’s normal business operations. U.S. exporters are identified during the application process and benefit from increased sales and jobs support because of the CGF.
EXIM is an independent federal agency that promotes and supports American jobs by providing competitive and necessary export credit to support sales of U.S. goods and services to international buyers. A robust EXIM can level the global playing field for U.S. exporters when they compete against foreign companies that receive support from their governments. EXIM also contributes to U.S. economic growth by helping to create and sustain hundreds of thousands of jobs in exporting businesses and their supply chains across the United States. In recent years, approximately 90 percent of the total number of the agency’s authorizations has directly supported small businesses. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of U.S. debt.
For more information about EXIM, please visit www.exim.gov