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Key Benefits
Maximum Allowable Repayment Terms
- Ex-Im Bank’s Environmental Exports Program is able to offer up to 15-year repayment terms* for U.S. exports of goods and services for renewable energy, water supply for human use, wastewater treatment.
Additional Enhanced Financing for Environmental Transactions
Qualifying environmental transactions are eligible to receive the following term enhancements:
- Capitalization of interest during construction.
- Automatic Availability of up to 30% eligible local cost support for medium term transactions.**
Ex-Im Bank’s Environmental Exports Team
At Ex-Im Bank, we take the environment seriously; so much so, that we have established a dedicated support team to assist U.S. environmental companies in competing and winning new sales. Ex-Im Bank’s Environmental Exports Team represents all major divisions within Ex-Im Bank. These individuals possess specific knowledge in environmental industries, facilitating the processing of environmental transactions through the Bank. In addition, Ex-Im Bank’s Director of Renewable Energy and Environmental Exports works directly with U.S. exporters, lenders, banks, borrowers, and international buyers while supporting and monitoring environmental transactions as they are submitted.
Ex-Im Bank Support for U.S. Environmental Small Businesses
Ex-Im Bank is dedicated to supporting U.S. small businesses. Every year, we recognize leading environmental businesses with an award honoring the “U.S. Environmental Small Business of the Year.” Approximately 80 percent of U.S. environmental companies are small and medium-sized companies, and these environmental small businesses drive the industry’s growth. Ex-Im Bank’s Environmental Exports Program allows small businesses to access competitive working capital financing and offer “open account” terms to international buyers — opportunities that help small businesses expand into new markets. In addition, there is no revenue cap for environmental companies using the small business multi-buyer insurance product.
Small Project Finance for Environmental Businesses
Renewable, water, and other environmental projects are often smaller in size than transactions in other sectors. That can be a limitation for using project finance, which is typically best-suited to larger deals. However, Ex-Im Bank offers a way around problems created by project size by its willingness to work creatively and flexibly to use project and structured finance for small projects. Ex-Im Bank can make a credit decision about a potential environmental project in one of three ways:
- Based strictly on the balance sheet of the borrower;
- As limited recourse project finance with a special purpose company borrower and project cash flows as the source of repayment;
- As a structured finance transaction with the borrower's balance sheet enhanced by special features.
The Environmental Exports Program is able to offer “small project” finance for environmental companies. This ensures smaller companies looking to expand internationally are able to secure the financing they need to fulfill contracts and grow.
For more information, please see http://www.exim.gov/products/guarantee/struct_fin_sm.cfm
Risk Sharing
Ex-Im Bank helps U.S. companies specializing in environmental technologies and services to reach buyers worldwide. Increasing global focus on sustainable development and rising environmental standards are creating new markets for these technologies. Certain markets carry greater risk. Whether it is a geothermal plant in the Philippines or a water purification system in the Ukraine, consider Ex-Im Bank a dependable partner in sharing that risk.
*Renewable energy and water project exports are eligible for repayment terms of up to 15 years under an Organization for Economic Cooperation and Development (OECD) agreement effective on July 1, 2007 for a trial period of two years.
** Local cost support of up to 30% available for all long-term transactions. See Local Cost Policy.
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