EXIM Bank offers financing support to foreign purchasers of new and used U.S.-manufactured ships under its direct loan, guarantee, and insurance programs. The OECD Arrangement on Guidelines for Officially Supported Export Credits governs the terms and conditions of EXIM Bank's financing support for ship exports.
EXIM Bank can provide financing for up to the lesser of (i) 85% of the contract price, or (ii) 100% of the U.S. content. The maximum repayment term varies according to the country category. For Category I countries (countries on the World Bank's "graduation list"), the maximum repayment term is five years, and for Category II countries (all other countries), the maximum repayment term is 10 years. Repayment must be no less frequently than semi-annually and usually consists of installments of equal principal. If a competitor's export credit agency is offering financing terms that exceed those offered by EXIM Bank or that derogate from the maximum terms permitted under the OECD Arrangement, EXIM Bank can consider matching the more favorable terms. EXIM Bank will base its credit decision on the creditworthiness of the borrower (and/or the guarantor, if any). Depending on the risk profile of the transaction, EXIM Bank may require additional security (e.g., a mortgage on the ship or other collateral acceptable to EXIM Bank).
EXIM Bank is able to support the export of used ships from the United States. In addition to completion of the Used Equipment Questionnaire, EXIM Bank may also require an inspection of the ship in determining the terms of EXIM Bank's financing support (including, but not limited to, the repayment term, advance rate, and security, if any).
EXIM Bank charges an exposure fee for each transaction, which may be included in the financed amount supported by EXIM Bank. The "Exposure Fee Calculator" located on EXIM Bank's website is used to determine the exposure fee. EXIM Bank charges a commitment fee of one-eighth of one percent per annum on the non-utilized amount for a guaranteed loan (and one-half of one percent per annum for a direct loan), which begins to accrue 60 days after EXIM Bank approval of the transaction, and which may not be financed.