Also Approves Preliminary Commitment to Expand Drinking Water Supply—a Transformational Export—to Cameroon and Update EXIM’s Country Limitation Schedule
FOR IMMEDIATE RELEASE January 15, 2021
Office of Communications (202) 565-3206
WASHINGTON – The Export-Import Bank of the United States (EXIM) Board of Directors yesterday unanimously approved a $69.8 million direct loan to support the purchase of U.S. goods and services, a preliminary commitment of $120.8 million for water treatment systems, and updates to EXIM’s Country Limitation Schedule (CLS).
“EXIM helps the world buy American, and yesterday’s Board action reflects EXIM’s support of American manufacturing jobs and objectives of the Program on China and Transformational Exports,” said EXIM President and Chairman Kimberly A. Reed. “It also underscores our agency’s commitment to key Congressional priorities: sub-Saharan Africa and transformational export sectors like ‘water treatment and sanitation, including technologies and infrastructure to reduce contaminants and improve water quality’ that were part of EXIM’s historic 2019 reauthorization.”
“EXIM has a long history of supporting humanitarian aid around the world. Among the transactions we considered yesterday was one to increase access to clean water for communities in Cameroon, which will help to improve health care and meet the demands of a growing population, “said EXIM Director and former Congressman Spencer Bachus. “In addition, yesterday’s votes continue to fulfill EXIM’s mission by supporting U.S.-based jobs, filling the gap when capital markets cannot provide long-term liquidity, and increasing the competitiveness of U.S. suppliers of goods and services.”
“Taken together, yesterday’s actions will support continued American leadership in manufacturing and ensure U.S. exports can compete fairly on a level international playing field,” said EXIM Board Member Judith D. Pryor. “I am also pleased the staff continue to assist U.S. exporters looking to Africa for opportunities. There is so much we can achieve together.”
The EXIM Board of Directors unanimously approved a transaction where the borrower and end-user of a $69.8 million direct loan is Hokchi Energy S.A. de C.V. of Mexico, with Pan American Energy S.L. of Argentina acting as guarantor. Hokchi Energy will use the direct loan for the purchase of U.S. goods and services including turbines, compressor units, and spare parts, for use in the production and processing of oil and gas resources located in an offshore block in the Gulf of Mexico. The transaction is estimated to support 200 jobs in Texas, Louisiana, and California.
The Board also authorized a request from the Environmental Chemical Corporation (ECC) for a preliminary commitment of $120.8 million to support ECC’s contract for the Cameroon Southwest Region Water Supply Project. A preliminary commitment is a non-binding offer of EXIM financing subject to EXIM’s review of an application for a final commitment. The project involves expanding the supply of drinking water in southwestern Cameroon. The transaction fulfills several EXIM areas of focus including renewables and potable water, its commitment to sub-Saharan Africa, and its Program on China and Transformational Exports. The transaction is estimated to support 300 jobs.
Finally, the Board approved updates to the Country Limitation Schedule (CLS), which informs if EXIM is open or closed for business in a market including general conditions of cover thereto, if any. The CLS informs external parties of EXIM’s credit risk appetite, provides guidance to EXIM’s credit staff in performing risk assessments, and governs the use of credit authority delegated by EXIM to external parties in the export credit insurance, working capital, and medium-term insurance and guarantee programs.
The changes to the CLS approved by the Board yesterday will provide its customers the opportunity to simply explore potential deals in more countries. In December 2020, EXIM’s Board voted to modernize EXIM’s 25-year-old cover policy to permit the agency to provide financing in support of U.S. exports to more foreign markets to more effectively counter competitors such as the People’s Republic of China, while protecting the taxpayer and providing a reasonable assurance of repayment.
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.