Download - 2008 Wdtc Ex Im Bank Slides
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EXPORT-IMPORT BANK
of theUNITEDSTATES
EXPORT-IMPORT BANK
of theUNITEDSTATES
Jobs Through Exports
Ex-Im Bank
U.S. Exporter
Product Overview
Video Presentation
Ex-Im Bank
U.S. Exporter
Product Overview
Video Presentation
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EXPORT-IMPORT BANK
of theUNITEDSTATES
EXPORT-IMPORT BANK
of theUNITEDSTATES
Jobs Through Exports
Ex-Im Bank 101:Ex-Im Bank 101:
The Basics
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Who We Are What We DoWho We Are What We Do
Ex-Im Bank is an independent agency of the
United States government
Established in 1934
Headquartered in Washington, DC
5 regional business development offices plus 2
satellite locations in CA (San Diego and San
Francisco)
Mission: Support US exports in order to
create and sustain US jobs
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Ex-Im Bank Regional OfficesEx-Im Bank Regional Offices
Newport
Beach
Newport
Beach
ChicagoChicago
NewNewYorkYork
MiamiMiami
HoustonHouston
San
Francisco
San Diego
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Eligibility CriteriaEligibility Criteria
US Content
51% for short-term transactions
85% for medium-term transactions
Services must be performed by US-based
personnel, either in the US or in the host
country
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Eligibility CriteriaEligibility Criteria
Country Eligibility
Support available in over 155 countries
Restrictions may apply for political or
economic reasonsRefer to the Country Limitation Schedule
(CLS) at www.exim.gov on the homepageunder Shortcuts
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HowWe Help IncreaseYour Export SalesHowWe Help IncreaseYour Export Sales
Minimize risks
Level the playing field
Supplement commercial financing
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Foreign Export Credit AgenciesForeign Export Credit Agencies
EDC Canada
ECGD UK
Coface France
EulerHermes Germany
JBIC Japan
Sace Italy
KEIC, Keximbank S. Korea
OeKB Austria
Efic Australia
Your foreign competitors have similarsupportYour foreign competitors have similarsupport
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Small Business IS Our BusinessSmall Business IS Our Business
86% of all Ex-Im Bank transactions supportedsmall business exports!
90% of total working capital guarantees --($990 million)
90% of total short-term insurance policies --($2.1 billion)
MT loans and guarantees -- $275 million
$525 million in working capital guaranteesand export credit insurance supportedexports by minority or woman-ownedbusinesses
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FY 2008 at a GlanceFY 2008 at a Glance
Total Authorizations: $12.6 billion
Major Sectors:
Transportation: $4.7 billion
Environmental: $82 million
Energy: $2.0 billion
Agriculture: supported $1 billion in export value
Services: supported $1.6 billion in export value
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Trade Terms as a Spectrum of RiskTrade Terms as a Spectrum of Risk
Seller RiskSeller Risk Trade TermsTrade Terms Buyer RiskBuyer Risk
HighHigh LowLow
Open AccountOpen Account
Cash Against DocumentsCash Against Documents
Sight Letters of CreditSight Letters of Credit
Usance / Deferred Letters of CreditUsance / Deferred Letters of Credit
Payment in AdvancePayment in Advance
LowLow HighHigh
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Ex-Im Bank SupportCovers the SpectrumEx-Im Bank SupportCovers the Spectrum
Pre-Export
Financing
Post-Export
Financing
Working
CapitalGuarantee
Insurance
GuaranteesDirect Loans
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EXPORT-IMPORT BANK
of theUNITEDSTATES
EXPORT-IMPORT BANK
of theUNITEDSTATES
Jobs Through Exports
Pre-Export Financing:Pre-Export Financing:
Export Working CapitalGuarantee Program
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Working Capital Guarantee (WCG)Working Capital Guarantee (WCG)
Assists small and mid-size companies inobtaining working capital to produce orpurchase US goods and services for
exportProvides a 90% guarantee of repayment
(principal and interest) on loans to
exportersMay be set up as Transaction-Specific
or a Revolving Line of Credit
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Working Capital GuaranteeWorking Capital Guarantee
No minimum or maximum amounts
Loan supports advances made against
export-related inventory (including WIP)
and foreign receivables:
Up to 75% advance rate on inventory, and
up to 90% on foreign receivables
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Working Capital GuaranteeWorking Capital Guarantee
Assists US-based transportation logistics
providers in obtaining working capital tofacilitate the export of commercial
cargo on US-flag ships
Uses accounts receivable as collateralfor the loan
Transportation Freight Financing (TFF) ProgramTransportation Freight Financing (TFF) Program
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Working Capital GuaranteeWorking Capital Guarantee
Funds may be used to provide servicesdirectly related to the logistics involved in the
export of commercial cargo such as: Ocean, air, rail and truck freight
Cargo and marine insurance
Crating and packing
Port drayage; warehousing
Terminal, forwarder and broker fees
Transportation Freight Financing (TFF) ProgramTransportation Freight Financing (TFF) Program
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Working Capital GuaranteeWorking Capital Guarantee
Asset-Based: fully collateralized
Personal guarantees are required of owner(s)
Cost:
$100 application fee
Up to 1.5% facility fee Reduced fee if:
Exports sales structured under L/Cs and/or secured byexport credit insurance; exporters financial ratios arewithin its industry median
A lower fee may be negotiated with a DelegatedAuthority Lender (see list on www.exim.gov)
Interest rate is determined by the lender
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WCG Increases Borrowing PowerWCG Increases Borrowing Power
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Success Story:Callidus Technologies LLCSuccess Story:Callidus Technologies LLC
Challenge: Small business, environmentalengineering firm needed cash to open stand-by L/Cs (performance bonds) with the buyeras beneficiary during production of the
equipment. Solution: Lender funded a $5mm Ex-Im Bank
guaranteed working capital line of credit, withthe exporter collateralizing only 25% of thestand-by L/C amount.
Result: The firm was able to accept one ofthe largest orders ($16 million) in its history,and added 70 new employees.
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EXPORT-IMPORT BANK
of theUNITEDSTATES
EXPORT-IMPORT BANK
of theUNITEDSTATES
Jobs Through Exports
Post-Export Financing:Post-Export Financing:
Short-TermExport Credit Insurance
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Short-TermExport Credit InsuranceShort-TermExport Credit Insurance
Protects U.S. exporters against non-payment byforeign buyers due to:
Commercial Risks
Political Risks
Allows exporters to offer competitive credit terms toforeign buyers
Generally up to 180 days, some products may qualify for 360day terms
Obtain additional financing
Insured foreign receivables may be added to your borrowingbase by assignment of policy proceeds (claim payments) tolender
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Risks CoveredRisks Covered
Commercial Risks
Insolvency
Bankruptcy
Protracted default
Political Risks
Transfer risk
War, revolution,
insurrection,expropriation
Cancellation of animport or exportlicense
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Short-TermExport Credit InsuranceShort-TermExport Credit Insurance
Coverage:
Up to 180 days, exceptionally 360 days (for
capital equipment and bulk, unprocessed
agricultural products)
Commercial and political risks
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Short-TermExport Credit InsuranceShort-TermExport Credit Insurance
Lender Policies:
Bank Letter of Credit
Financial Institution Buyer Credit
Financial Institution Supplier Credit
Foreign Dealer Insurance Policy (may roll to MT)
Exporter Policies: Multi-Buyer or Single-Buyer
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Small Business Multi-Buyer PolicySmall Business Multi-Buyer Policy
Coverage:
No 95% commercial and 95% political
Exporter must qualify as smallbusiness by SBA definition, and:
No more than $5 million in export creditsales over the past 2 years
1 year successful operating history
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Small Business Multi-Buyer PolicySmall Business Multi-Buyer Policy
Must insure ALL export credit sales
(L/C, CIA, CAD, SDDP sales may
excluded)
Refundable advance premium: $500
No deductible, no application fee, pay-
as-you-ship, no minimum premiumrequirement
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Small Business Multi-BuyerPremium Rates (example)Small Business Multi-BuyerPremium Rates (example)
Term SovereignFinancial
Institutions Private
Sight L/Cs $0.04 $0.04 N/A
1-60 days $0. 19 $0. 24 $0.6561-120 $0. 32 $0. 39 $1.06
121-180 $0. 41 $0. 50 $1.35
181-270 $0. 51 $0. 63 $1.70
271-360 $0. 62 $0. 77 $2.08
Per $100. of the gross invoice amount
25%rate reduction ifused with Ex-Im/SBA Working Capital Guarantee product!
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Standard Multi-Buyer PolicyStandard Multi-Buyer Policy
For experienced exporters with over 500
employees and /or $5mm in annual export
credit sales
Must insure ALL export credit sales(L/C, CIA, CAD, SDDP may be excluded)
On a case-by-case basis, exporter may
request to exclude certain buyers(Reasonable Spread of Risk)
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Standard Multi-Buyer PolicyStandard Multi-Buyer Policy
Coverage:
95% for both commercial and political risks
Buyer credit limits endorsed to policy (requiresminimal pre-approvals by Ex-Im Bank)
No minimum premium, pay-as-you-ship
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Success Story:Pharmaceutical Trade Services, Inc.Success Story:Pharmaceutical Trade Services, Inc.
Challenge: Exporter of specializedprescription drugs needed to extendcompetitive credit terms to get larger orders
Solution: The company used the smallbusiness multi-buyer policy as a marketingtool to extend net 45 day terms and increasesales
Result: The companys export sales volume
increased over a 7 year period from $713,000to nearly $6 million, and the staff grew to 15employees
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Single Buyer Insurance PolicySingle Buyer Insurance Policy
Buyer-specific policy
Insures a single sale or multiple sales to
one buyer90% coverage, both commercial and
political; 95% for letters of credit
Maximum policy period: 1 year
No deductible, No application fee
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Single Buyer Insurance Policy(cont.)Single Buyer Insurance Policy(cont.)
Premium based on country and length of creditterms (see rates on www.exim.gov)
Charged on sales volume (not credit limit)
Pay-as-you-ship
Reduced minimum premium for small
business exporters
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Single-Buyer Rates (private sector)(example)Single-Buyer Rates (private sector)(example)
Country
Sight
L/C
Up to 60
days
61-120
days
121-180
days
Mexico $0.03 $0.48 $0.79 $1.00
Brazil $0.07 $0.84 $1.38 $1.76U.A.E. $0.03 $0.48 $0.79 $1.00
Turkey $0.09 $1.05 $1.72 $2.20
Thailand $0.04 $0.65 $1.06 $1.35
Per$100of the gross invoice amount
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EXPORT-IMPORT BANK
of theUNITEDSTATES
EXPORT-IMPORT BANK
of theUNITEDSTATES
Jobs Through Exports
Post-ExportFinancing Solutions:Post-ExportFinancing Solutions:
When a Foreign BuyerNeedsMedium-TermorLong-TermFinancing
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Medium-Term Insurance andGuaranteesMedium-Term Insurance andGuarantees
Capital equipment sales and related services
Lease transactions
Finance Lease: Insurance or Guarantee
Operating Lease: Insurance only
Used equipment OK up to 3 year terms
Buyer criteria per Medium-Term CreditStandards
Minimum 3 year history
Reliable financial statements (audited if creditexceeds $1 million)
Buyer must meet certain financial ratios
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Medium-Term Insurance andGuaranteesMedium-Term Insurance andGuarantees
15% downpayment required (may be financedby the lender)
100% coverage of the remaining 85% on both
principal and interest on loans made by lenders
directly to foreign buyers or on credit terms
extended to foreign buyers by exporters
1 to 5 year repayment, exceptionally 7 years
and < $10 million
Generally limited to buyers in developing
markets
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Medium-Term Insurance & Guarantees:Pricing Indications (example)Medium-Term Insurance & Guarantees:Pricing Indications (example)
Private-sector, corporate borrowers, 5 year tenor, fortransactions under $10 million
Country InsurancePremium
GuaranteeExposure
FeeMexico 1.92 % 1.94 %Brazil 4.69% 4.76 %Russia 3.14% 3.19%
Refer to Fee Calculator on www.exim.gov
One-time (flat) fee (may be financed)
Under Guarantee program, a 0.125% p.a. commitment feeapplies
(accrues 60-days from approval date)
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Long-Term Financing SupportLong-Term Financing Support
Generally used for buyer financing in amountsover $10 million and 7 to12 year repaymentterms
Generally, large-ticket items (aircraft) and
project finance receive long-term support
15% down payment / Ex-Im Bank supports100% of the remaining 85% (the financedamount)
Loan Guarantees
Direct Loans
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Success Story:PowerLight CorporationSuccess Story:PowerLight Corporation
Challenge: Designer/operator of grid-connected solar power systems needed toprovide equipment and services for a Koreanproject, and arrange attractive financing for
the buyer Solution: A $7.8 million Ex-Im Bank medium-
term loan guarantee was put in place. Thelender was City National Bank of Los Angeles
Result: PowerLight was the first exporter tobenefit from the new 15-year repaymentterms available to support U.S. exports forrenewable energy, water and hydroelectricpower projects
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Success Story:Le Tourneau Technologies, Inc.Success Story:Le Tourneau Technologies, Inc.
Challenge: To provide competitive financingto construct a mobile offshore oil and gasexploration and drilling rig in Mexico
Solution: A $54 million long-term Ex-Im Bankguarantee (8.5 years) was issued to thelender, BBVA Bancomer of Mexico City. Sucha loan was not available without Ex-Im Bankssupport
Result: With the guarantee in place, LeTourneau won this $129 million contractover its competitors
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Ex-Im Bank OnLineEx-Im Bank OnLine
Our new, web-based application andtransaction management system makes iteasier for exporters and lenders to use Ex-ImBank products
Automation of our primary businessprocesses, particularly for those most used bysmall businesses:
All exporter insurance policies (ST and MT)
Lender policies for ST and MT buyer credits,letters of credit, foreign dealer policy
MT guarantees under $10 million
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How Can We Help YOU?How Can We Help YOU?
Expand international salesBoost borrowing power
Speed cash flow
Enter new markets
Mitigate risks and losses
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Ex-Im Bank PartnersEx-Im Bank Partners
Additional resources and assistance in
applying for Ex-Im Bank products are
available from:
Insurance Brokers (see list on www.exim.gov)
City/State Partners (see list on www.exim.gov)
Delegated Lenders (see list on www.exim.gov)
US Export Assistance Centers (USDOC and SBA)
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For More InformationFor More Information
Call the Ex-Im Bank Regional Office near you:
New York: 212-809-2650 (Northeast / Mid-Atlantic)
Chicago: 312-353-8081 (Midwest)
Miami: 305-526-7436 (Southeast)
Houston: 281-721-0470 (Southwest)
Newport Beach: 562-980-4580 (West)
San Francisco: 415-705-2285
San Diego: 619-557-7091
800-565-3946 [exim]
Web Site: www.exim.gov