Ship Exports

Ex-Im 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 Ex-Im Bank’s financing support for ship exports.

New Ships

Ex-Im 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 Ex-Im Bank or that derogate from the maximum terms permitted under the OECD Arrangement, Ex-Im Bank can consider matching the more favorable terms. Ex-Im 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, Ex-Im Bank may require additional security (e.g., a mortgage on the ship or other collateral acceptable to Ex-Im Bank).

The U.S. Government also can provide support to the U.S. maritime industry by supporting the export of ships through its programs offered by the Overseas Private Investment Corporation (OPIC) and the Maritime Administration (MARAD).
On April 15, 2002, the OECD Sector Understanding on Export Credits for Ships took effect as an Annex to the Arrangement on Guidelines for Officially Supported Export Credits. This Sector Understanding sets common rules for government-supported export credits for ships, in particular concerning interest rates and the duration of credits. As of the writing of this Fact Sheet, the U.S. Government has not yet adopted this Sector Understanding. Please contact the Transportation Division at 202-565-3550 for further information.

Used Ships

Ex-Im Bank is able to support the export of used ships from the United States. In addition to completion of the Used Equipment Questionnaire, Ex-Im Bank may also require an inspection of the ship in determining the terms of Ex-Im Bank’s financing support (including, but not limited to, the repayment term, advance rate, and security, if any).

Fees

Ex-Im Bank charges an exposure fee for each transaction, which may be included in the financed amount supported by Ex-Im Bank. The “Exposure Fee Calculator” located on Ex-Im Bank’s website is used to determine the exposure fee. Ex-Im 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 Ex-Im Bank approval of the transaction, and which may not be financed.