EXIM Renews Supply Chain Finance Guarantee of $200 Million Purchase Facility Supporting United States Steel Corporation
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 $200 million purchase facility for the United States Steel Corporation (U.S. Steel) under EXIM's Supply Chain Finance Guarantee Program.
Compared to the 95 percent guarantee approved by the EXIM Board in September 2020, the new 90 percent guarantee will reduce the overall cost to the suppliers and therefore increase utilization of the facility. The facility would not only support U.S. Steel, headquartered in Pittsburgh, PA, but also its supply chain across America that has been greatly impacted by the ongoing pandemic. Approximately 50 to 60 of its U.S. suppliers in 16 states and the District of Columbia are anticipated to benefit from the facility. The transaction is estimated to support 700 U.S. jobs as determined by EXIM's job calculator.
"Throughout the pandemic, EXIM has filled in gaps in private-sector financing in support of U.S. exports," said Acting EXIM President and Chairman James Burrows. "By renewing the guarantee of this purchase facility, we are continuing to support the American economy and supply chain while building back better."
"U.S. Steel's supply chain includes tens of thousands of hard-working Americans. Anything that can increase the competitiveness of the businesses they work for is a win for this country," said John M. Foody Jr., U.S. Steel's Vice President and Chief Procurement Officer. "We appreciate EXIM's efforts to enhance and secure our domestic supply chain."
ABOUT EXIM:
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.
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