Special Terms approved by the OECD for 2-year trial period include:
WATER SUPPLY & TREATMENT:
Projects related to the supply of water for human use and wastewater treatment facilities; collection and treatment of household and industrial wastewater and sewage, including water recycling and treatment of sludge
Solar photovoltaic power
Solar thermal energy
Tidal and tidal steam power; wave power; ocean thermal energy
Ex-Im Bank provides 90-100% repayment Guarantee for working capital loans, revolving or transaction based, made by commercial lenders to small businesses to finance export sales.
The Working Capital Guarantee serves as the collateral to the commercial lender by mitigating the risk inherent when the source of repayment for the loan is an overseas contract.
Enables exporters to finance materials, labor, and overhead to produce goods/services for export.
Enables exporters to cover standby letters of credit for bid and performance bonds, or payment guarantees.
Enables the exporters to finance foreign sales receivables.
Most Working Capital Guarantees provided by Delegated Authority Lenders without prior Ex-Im Bank approval.
Short-term EEP Case Study: Environmental Dynamics, Inc (EDI)
EDI of Columbia, MI – established in 1975 – had mainly domestic sales and wanted to expand to new foreign markets for its advanced water and wastewater treatment technologies.
In 1997, used Ex-Im Bank’s short-term insurance to offer financing to their international customers with repayment terms ranging from 60-360 days.
Result : Dramatically increased their sales and now has a distribution network in more than 30 countries. EDI has installed equipment in more than 3,000 industrial and municipal wastewater treatment systems worldwide.
EDI plans to hire additional employees and expand marketing further in Asia and Latin America.
Ex-Im Bank’s Comprehensive loan guarantee under the Environmental Enhancement Program enabled Aqua-Chem of Milwaukee to win an $9.3MM contract to win and build a 1000 gpm desalination plant for Aruba’s Water and Electricity Board.
Ex-Im Bank supported enhancements to the Loan:
repayment term of 7 years (longer terms were offered)
capitalized interest during construction (1.5 years); total term equal to 8.5 years
supported an additional 15% local cost.
Canadian Imperial Bank of Commerce made the loan to WEB, NV at fixed interest rate with Ex-Im Bank’s Guarantee.
Ex-Im Bank and CIBC’s Program support, and willingness to meet directly with WB,NV , helped Aqua-Chem win this deal over foreign competition.