Ex-Im Bank Business Development Staff Mr. Brian Sant Angelo Director- Russia, CIS, and Turkey 811 Vermont Avenue, N.W. Washington, D.C. 20571 Ph: (202) 565-3484 Fax: (202) 565-3961 U.S. Government Contacts in the Regions Ex-Im Bank Opportunities in Central Asia and the Caucasus Ex-Im Bank Financing: Programs in the Central Asia and Caucasus Regions Ex-Im Bank Success Stories in Central Asia and the Caucasus Regions Recently Approved Transactions in Central Asia and the Caucasus Regions

Ex-Im Bank Financing: Programs in the Central Asia and Caucasus Regions

Ex-Im Bank supports purchases of U.S. capital goods and related services by guaranteeing or insuring loans to international buyers. In some cases, we also provide direct loans to buyers. Short, medium, and long-term financing is available.

Country specific information about Ex-Im Bank financing is published on Ex-Im Bank's web page in the Country Limitation Schedule (CLS).

The Bank's products fit into three major categories:

Loan Guarantees: By reducing repayment risks, guarantees allow lenders to offer financing to foreign buyers of U.S. exports with fixed or floating competitive rates. Goods and services sold on repayment terms of one year or more are eligible for loans, guarantees, and insurance.

Ex-Im Bank loan guarantees cover the lesser of (i) 85% of the contract price, if all of the content is U.S., or (ii) 100% of the U.S. content and are available for medium-term (severn years or less principal repayment and smaller than $10.0 million) and long-term (over five-year repayment terms or greater than $10.0 million). The interest rate charged is usually a floating rate, negotiated between the buyer and the lender.

Under the Guarantee program, Ex-Im Bank guarantees the loan made by a lender to the foreign buyer. Because Ex-Im Bank approves the documentation before the guarantee goes into effect, the lender is assured that a claim will be paid if it is presented within the time allowed. The interest rate charged is negotiated between the lender and the buyer. Ex-Im Bank's guarantee includes accrued interest. Usually the lender or the foreign buyer approaches Ex-Im Bank for the guarantee.

Insurance: Ex-Im Bank offers a variety of export credit insurance policies to exporters and financial institutions to reduce repayment risks on foreign receivables due to political or commercial events. Policies may cover single or repetitive sales to single or multiple buyers. As determined by the product, repayment terms are available for short-term sales (up to 180 days, exceptionally 360 days) and medium-term sales (up to five years).

Ex-Im Bank also offers insurance with eligibility requirements similar to those for a loan guarantee. The Insurance Policy program covers one or a series of shipments to one buyer that has been found creditworthy. Ex-Im Bank insures that if the foreign buyer does not pay, outstanding principal and interest will be paid to the insured. Frequently a bank is the insured and will disburse to the exporter once insurance cover is approved. The bank then has made a loan to the foreign buyer.

The documentation for the loan, such as the invoice, bill of lading and exporter's certificate, are not submitted to Ex-Im Bank. The lender takes responsibility for their completeness. Often insurance brokers are used to provide the required application information to Ex-Im Bank and assist the bank with the documentation. Applications may come from an exporter, bank or insurance broker.

Direct Loans: Direct loans to foreign buyers enable exporters to overcome financing gaps and compete against foreign subsidized competition with the lowest interest rates allowed under international OECD guidelines.

In some cases, Ex-Im Bank will extend a direct loan to an international buyer. The down payment requirements are the same as those for the loan guarantee, but direct loans have a fixed interest rate, based on the U.S. Treasury rate.

Project and Non-Project Structured Finance: Ex-Im Bank offers a range of financing solutions for U.S. exporters and their international customers. Limited recourse (project) and non-project structured financing are two options that offer maximum flexibility for project sponsors and help U.S. exporters compete globally in natural resource and infrastructure sectors.

Ex-Im Bank can consider limited recourse project financing in most countries and has no country or project dollar limits. In either project or non-project structured finance, Ex-Im Bank has two primary goals: to maximize U.S. company participation in the transaction in order to support U.S. jobs; and to lend responsibly into creditworthy projects in order to protect the interests of our "shareholders," the U.S. taxpayers.

Ex-Im Bank's limited recourse project finance is an arrangement in which Ex-Im Bank lends to project companies and looks to the project's future cash flows as our source of repayment instead of relying directly on foreign governments, financial institutions or established corporations for repayment of the debt.

This financing arrangement is especially appropriate where hard currency revenues can be captured offshore or long-term off-take contracts insure project cash flows. Ex-Im Bank will work with project developers or equity participants to develop a structure that can be sustained throughout the project's operations.

Through non-project structured finance, Ex-Im Bank can consider existing companies overseas as potential borrowers based on their creditworthiness as reflected on their balance sheet and other sources of collateral or security enhancements. Ex-Im Bank has done structured transactions such as multiple-country fiber-optic cable, oil and gas projects, air traffic control, telecommunications and manufacturing entities.

How to Apply for Ex-Im Bank Financing