FOR IMMEDIATE RELEASE January 12, 2000
Nancy Publicover at (202) 565-3200
WASHINGTON - Capital Radio Limited of Kampala, Uganda is upgrading its FM radio broadcasting capabilities and breaking into the Kenya radio market with equipment from six U.S. exporters and financing from the Export-Import Bank of the United States (Ex-Im Bank).
Broadcast Electronics Inc., Quincy Ill. is the primary exporter on the $218,00 sale, contributing nearly $100,000 in transmitters. The company worked with International Capital Group of Dallas, Texas, to arrange turnkey financing solutions for Capital Radio. International Capital Group helped Capital Radio finance the purchase with a loan from First International Bank of Hartford, Conn., backed by a medium-term guarantee from Ex-Im Bank.
According to George Grose of International Capital Group, the sale would not have been possible without Ex-Im Bank's guarantee: A company like Capital Radio doesn't have a lot of options in the Uganda banking industry. They would be subject to interest rates of 23 or 24 percent. Their only option to do the sale is to secure an Ex-Im Bank loan or go to a European manufacturer.
Grose recommended that Capital Radio bundle several small U.S. purchases into a package sale, to make full use of Ex-Im Bank support. This financing structure streamlined the transaction for Capital Radio and enabled additional small business suppliers to participate: MacAfrica, Chelmsford, Mass.; Enco Systems, Farmington Hills, Mich.; Customer Business Systems, Inc. Reedsport, Ore.; Radio Express, Inc., Burbank, Calif.; and Radio Computing Services, White Plains, N.Y.
John Macdonald, sales manager, Broadcast Electronics, said that even small transactions helps his and other small companies gain a foothold in the African market and begin to establish important relationships. Africa is a new horizon for BE. A sale like this is very strategic. It will help us expand our sales base in Africa and will ultimately help us keep and increase jobs, Macdonald said. Once you establish a positive relationship, they always come back for additional needs.
In fiscal year 1999, Ex-Im Bank approved more than $600 million in financing to support U.S. exports to sub-Saharan Africa. Ex-Im Bank is an independent U.S. government agency that assists in financing the export of U.S. goods and services to developing markets around the world, through export credit insurance, working capital loan guarantees, loan guarantees, and direct loans.
Visit Ex-Im Bank's Web site at www.exim.gov
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