Newsletter - Trade Finance

owners, and they are a model for the rest ofthe country,” comments Hochberg.“We are proud of our work in helpingTexas boost its economy through exportgrowth,” says Jaime Martinez of thecentre’s Texas International BusinessAccelerator. “Our Work with Ex-Im Bankhas been beneficial to small and mediumsizedbusinesses through the state, and welook forward to maintaining a strongpartnership in the years ahead.” ■SMALL BUSINESS EXPORTER OF THE YEARThe Small Business Exporter of the Year is aKentucky-based manufacturer of leatherlaces for footwear and sporting equipment –Auburn Leather Company.Hochberg notes: “This family-owned smallbusiness has increased sales and created jobsby selling their products to customersaround the world. I am pleased that thebank’s insurance policy has enabled thiscompany to expand into new markets, hirenew workers, and ensure that more storeswill have ‘Made in Kentucky’ products.”“The demand for our product is drivenby manufacturers and consumers thatrecognise the value of a genuine,American-made rawhide lace,” saysAuburn Leather Company president LisaHowlett. “Ex-Im Bank enabled us to meetthat demand. I am proud for our companyto receive this award and look forward toadditional growth in the coming years.”World Trade Consult acted as broker orthe company’s Ex-Im small businessinsurance policy. ■2013 US Ex-Im Awards Winners (PHOTO CREDIT: LIZ ROLL)RENEWABLE-ENERGY EXPORTER OF THE YEAREx-Im has named FirmGreen as itsRenewable-Energy Export of the Year.“Firm Green is a great example of howAmerican companies can remain globallycompetitive in the renewable energysector,” says Hochberg. “With greatproducts and innovative ideas, there is nodoubt that FirmGreen is a leader in thisexciting field.”“Ex-Im Bank has enabled us to expandfrom domestic sales only to a strong andgrowing export business, thanks to criticalfinancing and technical advice nobody elsewould provide,” says FirmGreen CEOSteve Wilburn.FirmGreen, alongside other US greetechsuppliers, worked on the export ofequipment and services for Gas Verde’sNovo Gramacho biogas project in Brazil(see www.tradefinancemagazine.com formore details). ■MINORITY BUSINESS EXPORTER OF THE YEARSana International Commerce is the Ex-ImMinority Business Exporter of the Year.“By selling their products to customersoverseas, Sana International Commerce hasbeen able to drastically increase sales andsustain American jobs,” says Hochberg.The company was founded in 1994 inSan Antonio, Texas, and sells and repairsheavy industrial equipment for oilfield,locomotive, and marine industries.“The support of Ex-Im Bank hasFridayhelped our company bloom,” says SanaInternational Commerce managerRossie Ortiz. “When we started ouroperations, we often had to reject ordersdue to a lack of capital. However, with thesupport of Ex-Im Bank, we have increasedour sales and created jobs in ourcommunity.”Since using Ex-Im’s working capitalguarantee, sales have increased from$400,000 to $8.3 million, and the companyadded renewable energy and food andbeverage divisions. Frost Bank of SanAntonio, Texas acted as the company’slender. ■SUB-SAHARAN AFRICA EXPORTER OFTHE YEARGeneral Electric Company (GE) is Ex-Im’sSub-Saharan Africa Exporter of the Year.“This transaction is what Ex-Im Bank is allabout – improving the lives of peoplearound the world while supportingAmerican jobs in the process,” saysHochberg. “I am pleased that GE isreceiving this award for exporting productsthat are helping to make clean drinkingwater available to the people of WestAfrica.”“Ex-Im Bank is a valued partner andtheir financing enabled GE Power & Waterto support this break-through project inNigeria,” comments Heiner Markhoff,president and CEO – water and processtechnologies for GE Power & Water.Ex-Im’s loan guarantee provides $9.5million in financing to the WaterTreatment Technology and ChemicalCompany Limited (WATTCCON), aNigeria-based company dedicated toproviding clean water to more 300 millionpeople in West Africa.“This transaction is a tremendousmilestone in our pursuit of boostingNigeria’s economy by increasing cleanwater access for more than 160 millionpeople,” says WATTCCON managingdirector and CEO Aliyu MaigariMamman. “I would like to thank GE, Ex-Im Bank and Fidelity Bank forcollaborating with WATTCCON on thisworld-class project.”With Ex-Im’s financing, WATTCCONwill purchase equipment from GE tohelp build Nigeria’s biggest and mostenvironmentally-friendly sodiumhypochlorite plant in Kaduna, Nigeria. ■TRADE FINANCE US Ex-Im Conference Newsletter www.tradefinancemagazine.com April 5, 2013 3

FridayTrade talk…“US Ex-Im Bank is a leader in export finance, in bringing liquidity tothe market and helping companies to obtain the financing theyneed. The strength of their capital markets programme isunmatched by any ECA and their direct lending programme is also avery competitive financing option for borrowers. US Ex-Im Bank hasbeen a true partner in addressing the demands of the market. Theyhave been devoted to supporting small to medium-sized businessesand we applaud the work done to help businesses to grow.”Lillian Labbat, export finance Americas head, JP Morgan“US Ex-Im continues to play a critical role supporting US exports ofcapital goods. Although liquidity has improved over the last year or so,the bank market for medium and long term loans continues to bevolatile. In this environment, US Ex-Im is a very important stabilityfactor for the investment decisions of the buyers of US goods andservices, who know they can count on it during uncertain times. Theinstitution deserves credit for its constant focus on innovation – fromdirect lending to the capital markets guarantee programme, or fromthe supply-chain program to global credit express loan programme forsmall and medium enterprises – US Ex-im continues to effectivelyadapt its strategies to the changing needs of the US exporters.”Valentino Gallo, global head of export and agency finance, Citi“Financing of large, complex projects has become increasinglydifficult with the successive financial crises starting with thecollapse of Lehman Brothers five years ago. A general lack ofliquidity, higher funding costs in light of regulatory issues such asBasel III, and fewer participants in the bank market following theretrenchment of traditional players, have made finding pockets ofliquidity difficult for the financing of projects.“US Ex-Im, through its direct loan programme, has become avalued partner of the banking community and a key component inthe financing of projects with complex financial structures as well astechnical profiles, which could not be developed without theliquidity and input provided by Ex-Im.“Sharing not only project risk but also funding risk with thebanks, US Ex-Im has been able to fulfill its mandate to promote USjob growth through exports (often high value added products andservices) while allowing the private sector to continue deploying itsresources in an efficient manner.”Daniel Minzer, head of Americas, export and agency finance,Sumitomo Mitsui Banking CorporationWant the latest news trade and export finance headlines?Follow us on Twitter@tradefinanceUS agency initiative to increase SME exportsUS Ex-Im will participate in US GlobalBusiness Solutions, a new interagencyinitiative to expand the reach of federalexport assistance and add 50,000 smallbusinesses to the nation’s exporter baseby 2017.Announced in Washington, DC, bySmall Business Administrator Karen Mills,the pilot programme will also aim atexpanding the base of financial institutionsand service providers that facilitateexports, adding an anticipated 250 tradefinance sources by December 2015.“To keep our economy growing, weneed more American small businesses tobecome exporters,” says US Ex-Imchairman and president Fred Hochberg.“Global demand for ‘Made in theUSA’ products and services is strong,but many small businesses are unawareof the opportunities in internationalmarkets or are wary of the risks. USGlobal Business Solutions will facilitateinteragency coordination to providethem with the market assistance andfinancing tools they need to begin orexpand exporting, increase theirrevenues and create good, middle-classjobs here at home.”Still at the development stage, USGlobal Business Solutions will ‘bundle’US government trade finance productsfor lenders and exporters. Theprogrammes and products will becombined into a single menu of optionsthat will be tailored to the stage of theexporter’s development and the capacityof the financial institution or serviceprovider. The initiative will be designedto make it easier and more cost-effectivefor exporters to use the programmes andproducts of multiple agencies.Six federal agencies will beparticipating: US Ex-Im, the US SmallBusiness Administration (SBA), the USDepartment of Agriculture, the USDepartment of Commerce/InternationalTrade Administration, the US Trade andDevelopment Agency (USTDA) and theOverseas Private InvestmentCorporation (OPIC). ■8 April 5, 2013 www.tradefinancemagazine.com TRADE FINANCE US Ex-Im Conference Newsletter

Friday“Chairman Hochberg flagged an interestingstatistic at a roundtable – commercialbanks funded just 20% of deals underEx-Im's long term programme in 2012,down from almost 100% in 2006. At thesame time Ex-Im authorisations havetrebled. Direct loans, the capital marketsand Pefco have filled the gap. Long term,this spells a potential risk for sponsors,borrowers and exporters whereby banks mayretrench from the asset class, leaving fewerplayers to step up when/if the capitalmarkets step back from providing liquidityat current levels.“The solution? Encourage banks to stayin the business by whatever means possible,such as supporting a secondary market inEx-Im paper, occasional and judiciousrationing of capital markets optionality, orother means – ideas are welcome. Notethat HSBC, for one, has no intention ofexiting this space, and we hope our peersfeel the same!”Ed Bullen, managing director, projectand export finance, HSBCSmall-scalesolar successin MexicoA US solar module manufacturer and aMexican company are both benefitingfrom US Ex-Im support.In a recently approved transaction,US Ex-Im will guarantee a $780,000,10-year loan to be made by UPSCapital Business Credit to financethe export of photovoltaic (PV) solarmodules from Suniva in Norcross,Georgia, to a rooftop solar-power projectof Grupo Metal Intra (GMI). GMIis a leader in Mexico’s prefabricatedbuildingindustry.The transaction utilises US Ex-Im’smedium-term buyer financing that isavailable to support smaller-scalerenewable-energy projects in Mexico andin most other countries.Another GMI company, IntragreenTecnología Sustenable, will integrate thesolar project and act as the provider of localservices, including the project’s installationand connection to the grid. US Ex-Im’sJP Morgan arranges Iraqisulphur plant financingmedium-term guarantee will also supportapproximately $130,000 of related localcosts.The 500-kilowatt roof-top solar powerproject will be placed on the roof of GMI’smain production plant in the city ofQuerétaro. The project will be one of thelargest rooftop solar-energy facilities inMexico.“Suniva is very proud to partner with aleading and visionary organization likeGMI/Intragreen in Mexico,” says Sunivachairman and CEO John Baumstark.“It is most fitting that the first major exportIn November, US Ex-Im guaranteed anexport credit financing for the design andconstruction of a sulphur purificationplant in Mosul, Iraq.The two-year $35 million export creditloan was made by JP Morgan directly tothe Oklahoma-based Devco International(Devco).The plant will use a priority processknown as submerged combustiondistillation, developed by CTI Consultingof New Orleans, to process sulphur fromunderground deposits.The facility will be run by the Al-Mishraq Sulphur State Company, whowill sell the purified sulphur in Iraq fordomestic use. There is strong demand forthe product in the agricultural sector, as itis a key ingredient in fertiliser.Lillian Labbat, managing director, JPMorgan, comments on the deal: "We areproud to support Devco International inthis important transaction which willcreate hundreds of American jobs. We seeexports as a key driver of economicexpansion. Our export financecapabilities and global footprint are whatenable us to help small businesses tocompete and to succeed.”With its particular design for thefacility, Devco aims to maximise labourconcentration in a fabrication-shopenvironment. The company will design,procure, fabricate, and pre-assemble theplant in the US and then ship the plant inmodular form to Iraq. When it arrives inIraq, the plant will then be re-assembledoutside the city of Mosul by the Iraqiownedcompany, Al Hawarth.US Ex-Im estimates, using data fromthe US departments of Commerce andLabor, that this financing will supportapproximately 380 US jobs.Fred Hochberg, US Ex-Im’s chairman andpresident, says: “This significant transactionnot only supports American small-businessjobs here at home, but it also supports thesulphur and agricultural industries in Iraq. Byproviding a working capital guarantee, Ex-ImBank is demonstrating that we are alwayslooking to support US exporters and growour economy by creating quality jobs here athome.”Devco is a chemical engineeringcompany that designs sulphur-handlingequipment. The firm has developed awet-processing technology whichconverts molten sulphur into solidsulphur pellets in an economical andenvironmentally friendly way.Doug Houston, owner and chiefexecutive officer of Devco, states: “Weare very pleased with the support beingprovided to us by Ex-Im Bank on thiscritical project. A project such as thiswould have been difficult to obtainwithout their dedicated assistance.“Projects of this magnitude allow us toextend and expand our technical staff,while supplying significant jobopportunities for our fabrication partnersin several locations throughout theUnited States. This project heightens thecompany’s opportunity to provideadditional United States based technologyand equipment solutions for Iraq.” ■and installation of our modules inMexico is utilising a guarantee from theUS Export-Import Bank with which wehave a longstanding and valuablerelationship.”“GMI has a long history of innovationand leadership in construction technology.Through our Intragreen subsidiary,we are continuing that tradition inrenewable energy. We are grateful thatSuniva, UPS Capital and US Ex-Im havejoined us as a vital part of that vision,” addsOscar Peralta Navarrete, chairman of theboard of GMI. ■TRADE FINANCE US Ex-Im Conference Newsletter www.tradefinancemagazine.com April 5, 2013 9

FridayAgenda: Friday, April 59:00 amWelcome (Regency Ballroom)Chairman Fred P. Hochberg9:15 am – 9:45 am Keynote RemarksLawrence Summers President Emeritus of Harvard University9:50 am – 10:50 amStrategies to Remain Competitive in Global MarketsA discussion with leading CEOs on strategies for US companiesremaining competitive in emerging world economies.11:00 am – 11:20 am Keynote RemarksTransportation Secretary Ray LaHood11:30 am – 12:30 pmConcurrent Breakout SessionsI. Opportunities and Risks of Global Power Development(Diplomat Ballroom)A panel discussion among international power-development leaderson the opportunities and challenges of the global power market.II. Latin America: Stronghold Markets for U.S. Exporters(Palladian Ballroom)A discussion on business opportunities for US companies in LatinAmerica.III. Women-Owned Companies Succeed in World Markets(Empire Ballroom – Lower Level)A panel discussion with women small-business owners discussingthe challenges and opportunities their company experiencescompeting in the global marketplace.IV. Alternatives and Complements to Ex-Im Bank DirectLoans: Exploring Long-Term PEFCO Funding Options(Congressional Room)A general introduction to PEFCO products and programs andthe panel will focus on how PEFCO can be used as an alternativeor a complement to Ex-Im Bank Direct Loan funding in longtermstructured finance transactions.12:45 pm Lunch/Keynote RemarksVice President Joe Biden2:00 pm ClosingChairman Fred P. HochbergThe Developmentand Agency FinanceConference 2013June 10th & 11th, 2013 • St. Regis HotelWashington D.C.www.euromoneyseminars.com/GDAFCPlatinum Sponsor:RegisterbeforeApril 5th,2013 andSAVE $400Bronze Sponsor:Mobilizing capital to support private sectortrade, energy and infrastructure developmentTo register or for more information…1. Visit www.euromoneyseminars.com/GDAFC2. Contact our events team on (UK) +44 (0)20 7779 72223. Email kproverbs@euromoneyplc.comSupporting Organizations: :Follow@EMSeminarsfor event updatesusing#GDAFC12 April 5, 2013 www.tradefinancemagazine.com TRADE FINANCE US Ex-Im Conference Newsletter