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Fixed-Rate Term Financing for International Buyers

Ex-Im Bank assists exporters by providing fixed-rate loans to creditworthy international buyers, both private and public sector, for purchases of U.S. goods and services.

Benefits:

Enables international buyers to obtain loans from Ex-Im Bank
Medium-term and long-term financing available

Eligibility

Ex-Im Bank’s loan to an international buyer is generally used for financing purchases of U.S. capital equipment and services, and exports to large-scale projects.
Financing may also be available for:

Refurbished equipment
Software
Certain banking and legal fees (See Financing Fees for Ancillary Services.)
Certain local costs and expenses (See Ex-Im Bank Policies – Local Cost.)

Military or defense items are generally not eligible nor are sales to military buyers (with certain exceptions).

Goods eligible for Ex-Im Bank financing must meet Ex-Im Bank’s foreign content requirements (See Ex-Im Bank Policies – Foreign Content.)

Goods eligible for Ex-Im Bank financing must be shipped from the United States to an international buyer. Exports financed by direct loans are normally subject to U.S. flag vessel requirements. (See Ex-Im Bank Policies – Shipping.)

Ex-Im Bank can do business in most markets. However, we may be limited or unable to offer financing in certain countries and under certain terms. (See Country Information – Country Limitation Schedule.)

Prior to approving certain transactions, Ex-Im Bank will take into account the economic impact of a particular transaction (see Ex-Im Bank policies – Economic Impact) and the environmental effects (see Ex-Im Bank policies – Environment).

Product Description

Size: There is no minimum or maximum limit to the size of the export sale that may be financed with Ex-Im Bank’s loan. However, transactions normally involve amounts over $10 million.

Coverage: The total level of Ex-Im Bank support will be the lesser of 85% of the value of all eligible goods and services in the U.S. supply contract or 100% of the U.S. content in all eligible goods and services in the U.S. supply contract.

Cash Payment: Ex-Im Bank requires the buyer to make a cash payment to the exporter equal to at least 15% of the U.S. supply contract. The 15% cash payment can either be borrowed from a lender or the exporter at market terms, or be from the buyer’s own funds.

Repayment Terms: Generally, the repayment term of a transaction is determined by numerous variables including but not limited to the borrower’s financial condition, the common repayment terms the market gives such products, specific industry practices, industry and country conditions, useful life, OECD and Berne Union agreements, and the matching of terms offered by other foreign government-sponsored financing. Repayment terms are generally in excess of seven years.

Application

Final Commitment (AP): If the contract has been awarded, only the international borrower may submit the final commitment (AP) application.

Letter of Interest (LI): If the contract has not been awarded, then an exporter, an international borrower, or a lender may request a nonbinding letter of interest (LI) containing Ex-Im Bank terms for the specific transaction. The LI is processed within seven working days, is valid for six months, and can be renewed.

Preliminary Commitment (PC): In exceptional cases, Ex-Im Bank will accept an application for a preliminary commitment (PC). A PC is a nonbinding expression of interest from Ex-Im Bank that the borrower's needs, as outlined in the application, generally meet Ex-Im Bank’s financing requirements.

Fees

LI Application Processing Fee – $100
PC Application Processing Fee – 0.1 of 1% of the financed amount
Commitment Fee – 0.500% per annum on the undisbursed balance of the loan
Ex-Im Bank Exposure Fee – Varies, depending upon tenor, country risk, and buyer credit risk. (See Exposure Fee Calculator.)