BOOSTING EXPORTS WITH INNOVATIVE FINANCE TECHNIQUES November 18, 2011PNC Trade Finance Solutions GLOBAL ACCESS EXPORT FINANCE FORUM
PNC Trade Finance Solutions PNC Trade Finance Group For more than 40 years, the PNC Trade Finance Group has partnered with the Export-Import Bank of the United States (“Ex-Im Bank”) to become a leading provider of financing solutions for U.S. companies engaged in international transactions PNC is the top provider of loans backed by Ex-Im Bank’s Working Capital Guarantee Program PNC is the top provider of medium-term financing to foreign buyers of U.S. exports – Medium Term Buyer Credit ProgramPNC Trade Finance Solutions Infrastructure: 16 professionals focused on Medium Term Buyer Credit Program in Pittsburgh 4 Sales/Business Development 5 Documentation/Compliance/Legal/Administration specialists 2 Collection specialists 5 Credit Underwriters Overseas consultants (deal finders) 7 professionals focused on Working Capital Guarantee Program in D.C 1
Medium Term Buyer Credit Program Case Study: Ferrocarril Transandino – Financing the Overseas Buyer Situation PNC had a direct calling effort on this well established Peruvian regional railroad operator and learned that it was seeking to upgrade its rail line. Best quality rail is of U.S. manufacture $12,000,000 – 7 yr. Loan SolutionPNC Trade Finance Solutions PNC offered a competitive rate, flexible term 7-year $12 million loan to buyer for the purchase of rail manufactured by Pittsburgh- based manufacturer. Ex-Im Bank Guaranteed Medium Term Program Results offered through U.S. manufacturer was able to expand into a new market, and beat out Asian and Latin American competitors; The introduction of Ex-Im Bank supported financing to this Peruvian company is anticipated to generate additional sales opportunities for U.S. manufacturers. 2
Working Capital Loan for Export Sales Situation Aquatech: a designer and manufacturer of industrial water conditioning and waste-water treatment systems with offices in the US, Canada, China and with installations in 45 countries. It needed immediate assistance in financing inventory and a performance bond to win its bid on a $70 million contract with Enel, Italy’s largest power company. Aquatech Solution PNC leveraged its Fast Track lending authority by the U.S. Ex-PNC Trade Finance Solutions $25,000,000 Im Bank, and PNC supported Aquatech’s contract with a $25 million guaranteed working capital loan. Ex-Im Bank Guaranteed Working Capital Line Results PNC arranged the Ex-Im Bank guaranteed working capital line in less than 90 days, enabling Aquatech to fulfill the contract within a short period of time. PNC shortly thereafter closed a second working capital line of a similar amount for a project with Occidental Petroleum in Oman. In 5 years, Aquatech has more than doubled in size. 3
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