However, Ex-Im Bank is not open in all markets. This is true for a variety of reasons, such as national economic issues, political issues, issues relative to outstanding arrears, etc. For example, Nigeria is open in the short, medium and long-term sectors. However, a corporate guarantee or bank guarantee from a creditworthy entity in the buyer's country may be necessary and would be acceptable to this institution to facilitate the transaction. Ex-Im Bank's Country Limitation Schedule is here:
http://www.exim.gov/products/special/africa/afr_cls.cfm.

Ex-Im Bank's mission is to create jobs through exports. It provides guarantees of working capital loans for U.S. exporters, guarantees the repayment of loans or makes loans to foreign purchasers of U.S. goods and services. Ex-Im Bank also provides credit insurance that protects U.S. exporters against the risks of non-payment by foreign buyers for political or commercial reasons. Ex-Im Bank does not compete with commercial lenders, but assumes the risks they cannot accept. It must always conclude that there is reasonable assurance of repayment on every transaction financed.
Our foreign content policy is here:
http://www.exim.gov/products/policies/foreign_content.cfm.

To qualify for Ex-Im Bank support, the product or service must have significant U.S. content and must not affect the U.S. economy adversely. Ex-Im Bank supports the sale of U.S. exports worldwide. In recent years, its focus has shifted to the developing nations whose economies are growing at twice the rate of the industrial nations. Ex-Im Bank will support the financing of the export of any type of goods or services, including commodities, as long as they are not military-related.

Also, when one considers Ex-Im Bank in your financing structures, note that 1) Ex-Im Bank primarily provides guarantees and insurance and 2) Ex-Im Bank's underwriting criteria is based on the balance sheet of the borrowing company. Our credit standards generally require 3 years of audited financial statements (for transactions over $1M). Unlike an investment bank that may provide funding based on projected results, we look predominantly to the historical performance and financial standing of the borrower. However, we do consider Project Finance proposals on a case-by-case basis with certain conditions. These are outlined in the Project Finance section below.

We use two products to accomplish this task – Export Credit Insurance and Commercial Loan Guarantees.
(http://www.exim.gov/products/special/africa/afr_offer.cfm)

Export Credit Insurance (Short-Term):
http://www.exim.gov/products/insurance/index.cfm

Export Credit Insurance policies protect the U.S. exporter against both the political and commercial risks of a foreign buyer defaulting on payment. Policies may be obtained for single or repetitive export sales and for leases. Short-term policies generally cover 100 percent of the principal for political risks and 90-95 percent for commercial risks, as well as a specified amount of interest. They are used to support the sale of consumer goods, raw materials and spare parts on terms of up to 180 days, and bulk agricultural commodities, consumer durables and capital goods on terms of up to 360 days.

The Export Credit Insurance policy provided by Ex-Im Bank to the U.S. supplier encourages that supplier to extend Open Account Terms to his buyer providing some security of repayment regardless of the political or commercial uncertainty in the country of the buyer. The U.S. supplier would apply to Ex-Im Bank for a short term insurance policy either directly or through his insurance broker or banker. Naturally, he would have to have completed a credit review of your company and used his normal standards of acceptance prior to submitting an application to us. But, the benefit to him is that once he receives our insurance, he can discount this "receivable" with his local bank. That is an option he would not have without the insurance policy issued by the U.S. Government.

Capital goods may be insured for up to five years, depending upon the contract value, under the medium-term policy which covers 100 percent of principal and interest on the financed portion. Ex-Im Bank's credit insurance allows exporters to finance receivables more easily by assigning the proceeds of the policy to their lender.

Commercial Loan Guarantees (Medium and Long-Term):
http://www.exim.gov/products/loan_guar.cfm

Guarantees of commercial loans to foreign buyers of U.S. goods or services cover 100 percent of principal and interest against both political and commercial risks of nonpayment. Medium-term guarantees cover the sale of capital items such as trucks and construction equipment, scientific apparatus, food processing machinery, medical equipment, or project-related services--including architectural, industrial design, and engineering services. Long-term guarantees are available for major projects, large capital goods and/or project-related services. Ex-Im Bank's Credit Guarantee Facilities also can be used to extend medium-term credit to buyers of U.S. capital goods and services through banks in certain foreign markets.

Ex-Im Bank's guarantees and medium-term insurance cover 85 percent of the contract price (100 percent of the financed portion). The foreign buyer is required to make a 15 percent cash payment. The fees charged by Ex-Im Bank for its programs are based on the risk assessment of the foreign buyer or guarantor, the buyer's country, and term of the credit. Ex-Im Bank's fees are highly competitive with those charged by the export credit agencies of other exporting countries.

As for the acquiring of product, the entity which will be purchasing the U.S product must be a foreign/international buyer. As a result, you would have to have a business registered in the importing country. It would be that business purchasing the U.S. product (bulldozers, etc.) that would also be applying to a U.S. or international bank for financing. The U.S. or international bank would then apply to Ex-Im Bank for our guarantee. As previously explained, the importer may also need to directly obtain a bank guarantee from a local bank.

Also, concerning used equipment, we may need to verify the equipment by checking serial numbers, getting third party inspections, etc..

There are three simple steps to approaching the Ex-Im Bank: 1) buyer negotiates a sales contract with a U.S. Supplier, 2) buyer and seller identify a financing institution to provide the loan (commonly a U.S. bank, but some foreign banks willing to lend U.S. Dollars can apply) (a list of banks is on our website and listed as “Delegated Authority Lenders”), 3) financial institution submits Final Application to Ex-Im Bank.

Exporters and importers can obtain an Ex-Im Bank Letter of Interest (LI) to assist in negotiations for Medium Term and Long Term transactions. The LI indicates the Bank's willingness to consider a financing offer if sale is completed. An LI can be issued within seven days of a request for financing and remains in effect for six months. The LI application can be located at the following web site: http://www.exim.gov/tools/how_to_apply.html

Project Finance (Long-Term)
http://www.exim.gov/products/guarantee/proj_finance.cfm

Ex-Im Bank will consider project finance proposals. Transactions supported by our Project Finance program are consistently selected for "Deal of the Year" awards since 2000. Ex-Im Bank projects have been awarded over twenty "Deal" citations by Euromoney magazines: Nigeria LNG - Africa Oil & Gas Deal of the Year; and Nanhai Petrochemical - Chinese Development Oil & Gas Award; Reliance Petroleum Ltd.; Asia-Pacific Oil & Gas Deal of the Year.

Project or “limited recourse project financing” means debt repayment comes solely from project cash flow, i.e., future project revenues. Even with Ex-Im Bank support, lenders need, among other things: strong off-take contracts (with hard currency captured offshore); technical comfort that project will be fully funded, constructed on time, and operated efficiently; reliable and creditworthy parties including sponsors, constructors, operators, and output purchasers; more than 15% equity required, so total debt provided less than 85%; complex documentation to perfect security; and appropriate risk-sharing among project parties.

U.S. Content requirements are similar to that for medium and long-term loan guarantees. One can apply in a similar manner to the Medium and Long-term transactions as described in the previous section.

More Information:

More information with regard to the Export Import Bank of the US is available at our website at www.exim.gov. If you need general information on exporter or foreign buyer finance programs, please visit the Ex-Im Bank website at www.exim.gov, click on "Products", then Click on "Africa" and review some of the Bank's programs in that region. You may also wish to register for our Africa Newsletter by visiting http://www.exim.gov/lists/subscribe.cfm and providing the needed information.