Under the Business Aircraft Initiative, EXIM Bank will work with Qualified Business Aircraft Financing Advisors (“Qualified Advisors”) retained by purchasers (or potential purchasers) of business aircraft that will complete due diligence and credit analysis to facilitate EXIM Bank supported financing of business aircraft.
- The Qualified Advisors will act as consultants to buyers of U.S. manufactured business aircraft seeking EXIM Bank supported financing.
- EXIM Bank’s designation of a person or entity as a Qualified Advisor does not constitute an endorsement by EXIM Bank of such person or entity.
- EXIM Bank will not be responsible for any fee or payment of any kind to the Qualified Advisor, all of which are the responsibility of the buyer retaining the Qualified Advisor.
Qualified Advisors -- Eligibility Criteria
Each firm or its principals must have (i) extensive experience in business aircraft financing with types of clients and in countries for which EXIM Bank support is needed, (ii) experience with EXIM Bank supported aircraft transactions, (iii) a good understanding of the 2011 Aircraft Sector Understanding (“2011 ASU”), and (iv) specific capabilities including:
- Lending Experience:
- At least five years of satisfactory experience in analyzing, structuring and completing financings for business aircraft in which the firm or its principals (or their prior firm) was taking the credit risk of the foreign buyer of the aircraft.
- Demonstrated expertise in business aircraft financing “best practices”.
- At least five years of managing a business aircraft portfolio, and a satisfactory history of performance for that portfolio based on default and loan loss experience.
- A substantial portion of the experience above must be in international markets, with specific experience in emerging markets (including China, Russia, Brazil and India).
- Due Diligence and Underwriting Capabilities:
- Adequate resources, processes and expertise to analyze the character, reputation and business practices of the transaction parties.
- Adequate resources, processes and expertise to assess, to EXIM Bank’s satisfaction, the creditworthiness of borrowers (including emerging market borrowers), and to identify recommended elements of a secured transaction structure.
- Systems and expertise to monitor the business aircraft transactions facilitated by the Qualified Advisor, as agreed with the guaranteed lender.
- Additional Requirements:
- Satisfactory results from due diligence completed by EXIM Bank on the firm and its principals (including EXIM Bank’s Character, Reputational, and Transaction Integrity (“CRTI”) screening, credit reports and financial information, and other information deemed appropriate by EXIM Bank).
- Submission of a written disclosure of any potential conflicts of interest related to a specific transaction that indicates either an absence or appropriate resolution of such conflicts.
- Confidentiality agreement among the Qualified Advisor, the buyer/borrower and the original equipment manufacturer (“OEM”) related to any information provided by the buyer/borrower, the OEM or any other party to the Qualified Advisor for the purpose of facilitating the EXIM Bank process. The confidentiality agreement should include provisions for the following:
- Such information shall not be used for any purpose other than performance of work to facilitate the EXIM Bank process.
- Such information shall not be disclosed to third parties, subject to typical exceptions.
- The Qualified Advisor shall implement procedures that will ensure that everyone working on the facilitation of the EXIM Bank process is aware of and complies with these requirements.
- An express agreement that all information obtained by the Qualified Advisor during the facilitation process shall be provided to EXIM Bank upon request.
- Disqualification: In the event of (i) a material failure to comply with these requirements, or (ii) a failure to perform to the Transportation Division’s satisfaction as evaluated pursuant to the Performance Guidelines, Ex-Im Bank may “disqualify” a Qualified Advisor and decide not to work with the firm as a Qualified Advisor to facilitate EXIM Bank guaranteed business aircraft financings in the future.