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EXIM Chairman Kimberly Reed Visits Gulfstream Aerospace Corporation to Present EXIM Deal of the Year Award for Innovative Risk-Sharing Transaction Supporting Hundreds of Jobs in Georgia and Across the USA

Marks New Model for EXIM’s First Risk-Sharing with Private Sector Partners; Honors Gulfstream, Apple Bank for Savings, AirFinance, Marsh’s Aircraft Finance Insurance Consortium, AXIS Insurance

FOR IMMEDIATE RELEASE January 14, 2021

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SAVANNAH, Georgia – Export-Import Bank of the United States (EXIM) Kimberly Reed yesterday visited the headquarters of Gulfstream Aerospace Corporation to present the company with the agency’s “Deal of the Year” award, in recognition of an innovative risk-sharing transaction supporting the export of a Gulfstream business aircraft to a buyer in the Czech Republic.

According to EXIM estimates, the transaction supported hundreds of American jobs at Gulfstream in Savannah, Georgia, and at companies in the Gulfstream supply chain, which extends over approximately 80 percent of the United States.

Chairman Reed presented the Deal of the Year award to Gulfstream’s Senior Vice President for Administration and General Counsel Ira Berman in the socially-distanced ceremony.

“I am honored to present the EXIM Deal of the Year Award to Gulfstream, along with the other companies—Apple Bank for Savings, AirFinance, Marsh’s Aircraft Finance Insurance Consortium, and AXIS Insurance—involved in this public-private financing partnership. The numerous individuals who worked together to reach an innovative solution to facilitate this deal, along with our exceptional EXIM staff, are to be commended,” said EXIM President and Chairman Kimberly Reed. “Nothing makes me prouder than to see high-quality, ‘Made in the USA’ products—like these exceptional, technologically advanced aircraft manufactured by Gulfstream—and the American workers in Savannah, Georgia and elsewhere who make it possible for the United States to succeed and win in the very competitive global marketplace. Congratulations!”

Under the transaction, EXIM provided a $10 million medium-term loan guarantee to support the export of a new Gulfstream G650 aircraft to a buyer in the Czech Republic. The transaction was approved in February 2019 by EXIM senior officials under individual delegated authority, during the period before the quorum on EXIM’s Board of Directors was restored in May 2019. The transaction was the first EXIM financing in support of Gulfstream aircraft since December 2014.

Apple Bank for Savings in New York was the lender for the euro-denominated financing, which was initiated through AirFinance, an EXIM Qualified Advisor. The risk mitigation was arranged by Aircraft Finance Insurance Consortium (AFIC) with a private-sector partner, AXIS Insurance. Apple Bank made two loans for the financed portion of the contract, one supported by an insurance policy from AXIS, and a second one for which EXIM provided a medium-term guarantee. The buyer made a cash payment for the balance of the contract price.

EXIM Chairman Kimberly Reed and Gulfstream Senior Vice President for Administration and General Counsel Ira Berman holding a model Gulfstream G650ER.
EXIM Chairman Kimberly Reed and Gulfstream Senior Vice President for Administration and General Counsel Ira Berman holding a model Gulfstream G650ER.

“Gulfstream is proud of its collaboration with EXIM, honored by this recognition and appreciative of the work EXIM has done to support U.S. jobs and our growth in international markets,” said Gulfstream Senior Vice President for Administration and General Counsel Ira Berman. “Loan guarantees from EXIM help us remain competitive, promote the benefits of business aviation and deliver our innovative and technologically advanced jets around the world.”

EXIM’s participation in the transaction was essential to secure support from AXIS for its first business-aircraft transaction. Without the co-risk mitigation strategy, the transaction would not have been completed because business-aircraft financing on acceptable terms was not available and, at the time of approval, EXIM lacked the quorum on its Board of Directors needed to complete the transaction solely as an EXIM financing. In the time since this transaction was completed, EXIM has approved three additional Gulfstream transactions, two of which involved AXIS as a co-risk mitigator.

Gulfstream and the other participants in the deal were initially honored in a virtual presentation during the 2020 EXIM Annual Conference, the largest conference in the agency’s history, which was held virtually in September.

ABOUT EXIM:

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.