Transaction Will Support an Estimated 600 American Jobs, Including Employment in the Aircraft Manufacturing Supply Chain
FOR IMMEDIATE RELEASE September 10, 2021
Office of Communications (202) 565-3204
WASHINGTON – Yesterday the Board of Directors of the Export-Import Bank of the United States (EXIM) approved the renewal of a 90 percent guarantee of a $180 million purchase facility under EXIM’s Supply Chain Finance Guarantee Program. The transaction will support aircraft engines sales from CFM International, Inc., in Cincinnati, Ohio, to The Boeing Company for use in exports.
EXIM’s guarantee will further support U.S. jobs as the COVID-19 pandemic continues to impact the commercial lending market, particularly in sectors such as aviation that have been heavily impacted by the pandemic. EXIM estimates that the renewal of the facility will support $353 million in export sales and 600 American jobs, including jobs at businesses that make up the aircraft manufacturing supply chain across Indiana, North Carolina, and Ohio.
“One of EXIM’s primary roles is to fill gaps in private-sector financing in support of U.S. exports. Throughout the pandemic, EXIM has fulfilled that mission by helping to ensure that American manufacturing jobs remain secure while the world navigates the historic disruptions to various markets and sectors,” said EXIM Acting President and Chairman James Burrows. “The renewal of EXIM’s guarantee of this facility creates greater certainty for American workers as our country continues to build back better from the pandemic.”
The guaranteed lender is Credit Agricole Corporate and Investment Bank in New York, New York. The EXIM-guaranteed purchase facility was originally approved by EXIM’s Board of Directors in July 2020 for $510 million. The lender will continue to purchase accounts receivable due from Boeing to CFM International for purchases of its LEAP 1B aircraft engines being used in the Boeing 737 MAX aircraft. The EXIM-guaranteed financing will be repaid over nine months.
EXIM’s Supply Chain Finance Guarantee Program enables approved lenders to expand capacity under their existing supply chain programs to reach more U.S. exporters and their respective suppliers. Under the program, EXIM provides a 90 percent guarantee to a participating lender that purchases accounts receivable from suppliers of an approved exporter, facilitating cash flow and liquidity for both the supplier and the exporter.
CFM International is the world’s leading supplier of jet engines for single-aisle aircraft. A 50/50 joint company between GE and Safran Aircraft Engines, CFM International develops, produces, and sells the advanced-technology LEAP engine as well as the best-selling CFM56 engine.
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.