jobs through exports export-import bank
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Jobs Through Exports
EXPORT-IMPORT BANK of the UNITED STATES
EXPORT-IMPORT BANK of the UNITED STATES
Financing Financing Environmental Environmental
ExportsExports
Financing Financing Environmental Environmental
ExportsExports
““Sharing Risk, Opening Sharing Risk, Opening Opportunities: Ex-Im Bank’s Opportunities: Ex-Im Bank’s
Environmental Exports Program”Environmental Exports Program”September 29, 2005September 29, 2005
Craig O’ConnorCraig O’Connor
Director – Environmental Exports Director – Environmental Exports Business DevelopmentBusiness Development
OverviewOverviewOverviewOverview
Introduction to Ex-Im BankIntroduction to Ex-Im Bank
Ex-Im Bank’s Environmental Exports ProgramEx-Im Bank’s Environmental Exports Program
Industry/Market AnalysisIndustry/Market Analysis
Ex-Im ProductsEx-Im Products
ConclusionConclusion
Ex-Im Bank IntroductionEx-Im Bank IntroductionEx-Im Bank IntroductionEx-Im Bank Introduction
Independent agency of the U.S. government. Independent agency of the U.S. government.
Established in 1934 to finance the export sales of goods and services Established in 1934 to finance the export sales of goods and services produced in the U.S.produced in the U.S.
Since 1934 - supported over $450 billion in exports. Since 1934 - supported over $450 billion in exports.
Supports short, medium, and long-term financing to Supports short, medium, and long-term financing to credit worthycredit worthy international international customers both public- and private-sector; working capital guarantees to U.S. customers both public- and private-sector; working capital guarantees to U.S. exporters.exporters.
Products include Direct Loans, Guarantees, Export Credit Insurance, Working Products include Direct Loans, Guarantees, Export Credit Insurance, Working Capital Guarantees, Tied Aid FundCapital Guarantees, Tied Aid Fund
No minimum nor maximum project size.No minimum nor maximum project size.
Special initiatives for environmental exports, small business, and lending directly to Special initiatives for environmental exports, small business, and lending directly to municipalities.municipalities.
Ex-Im Bank provides Loan Guarantees for Euros, other currenciesEx-Im Bank provides Loan Guarantees for Euros, other currencies
Environmental Exports Environmental Exports ProgramProgramEnvironmental Exports Environmental Exports ProgramProgram
Support for environmentally-beneficial exports included in our Charter. Support for environmentally-beneficial exports included in our Charter.
Environmental Exports Program Consists of Environmental Exports Program Consists of pro-activepro-active business development and enhancements to existing Ex-Im Bank programs. business development and enhancements to existing Ex-Im Bank programs.
Director Conlin formed new Environmental Exports TeamDirector Conlin formed new Environmental Exports Team
Environmental projects are offered enhancements:Environmental projects are offered enhancements:
Maximum OECD repayment term for Long-Term Loans and Guarantees of 10-15 years after project completion.Maximum OECD repayment term for Long-Term Loans and Guarantees of 10-15 years after project completion.
Capitalization of interest during construction.Capitalization of interest during construction.
Up to 15% local cost support within the U.S. scope of supply. Up to 15% local cost support within the U.S. scope of supply.
Repayment terms of 15-years allowed OECD as of July 1, 2005!Repayment terms of 15-years allowed OECD as of July 1, 2005!
PEFCO funding available for extended loan termsPEFCO funding available for extended loan terms
Use of structured finance approach to support smaller projectsUse of structured finance approach to support smaller projects
RESULTS: Transactions approved under the Program grew from RESULTS: Transactions approved under the Program grew from
13 in FY 1994, to 71 FY 2004, totaling over $2 billion.13 in FY 1994, to 71 FY 2004, totaling over $2 billion.
Qualifying Renewable Qualifying Renewable Energy SectorsEnergy SectorsQualifying Renewable Qualifying Renewable Energy SectorsEnergy Sectors
Special Terms approved by the OECD for 2-year trial period include:Special Terms approved by the OECD for 2-year trial period include:
RENEWABLE ENERGYRENEWABLE ENERGY
Wind energyWind energy
Geothermal energyGeothermal energy
Solar photovoltaic powerSolar photovoltaic power
Solar thermal energySolar thermal energy
Tidal and tidal steam power; wave power; ocean thermal energyTidal and tidal steam power; wave power; ocean thermal energy
Bio-energy: sustainable biomass, landfill gas, sewage plant gas, biogas. Bio-energy: sustainable biomass, landfill gas, sewage plant gas, biogas.
Hydropower – subject to further OECD discussions Nov. 2005Hydropower – subject to further OECD discussions Nov. 2005
WATER SUPPLY & TREATMENT:WATER SUPPLY & TREATMENT:
Projects related to the supply of water for human use and wastewater treatment facilities; 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 collection and treatment of household and industrial wastewater and sewage, including water recycling and treatment of sludge water recycling and treatment of sludge
US Environmental Industry Trade US Environmental Industry Trade
Balance 2003Balance 2003
(in $billions) (in $billions) Source: Environmental BusinessSource: Environmental Business International, International,
Inc.Inc.
US Environmental Industry Trade US Environmental Industry Trade
Balance 2003Balance 2003
(in $billions) (in $billions) Source: Environmental BusinessSource: Environmental Business International, International,
Inc.Inc.
US Ind US Mkt Surplus Exports Imports %ExportEquipmentWater Equipment & Chemicals 21.4 18.3 3.1 7.28 4.2 34%Air Pollution Control 19.1 19.2 -0.1 2.86 3.0 15%Instruments & Info. Systems 4.1 2.5 1.5 1.83 0.3 45%Waste Mgmt Equipment 9.2 8.9 0.3 1.75 1.5 19%Process & Prevention Tech. 1.4 1.5 -0.1 0.07 0.2 5%ServicesSolid Waste Management 42.9 44.2 -1.3 0.21 1.5 1%Hazardous Waste Mgmt 8.5 8.5 0.0 0.15 0.2 2%Consulting & Engineering 19.5 17.7 1.8 2.48 0.7 13%Remediation/Industrial Svcs. 10.4 10.3 0.1 0.41 0.4 4%Analytical Services 1.8 1.7 0.1 0.12 0.0 7%Water Treatment Works 31.3 33.8 -2.5 0.22 2.7 0.7%Resources Water Utilities 32.7 35.8 -3.1 0.10 3.2 0.3%Resource Recovery 16.7 12.4 4.3 4.80 0.5 29%Clean Energy Systems & Power 12.7 13.9 -1.2 2.42 3.6 19%Total 231.5 228.7 2.9 24.7 21.9 10.7%
Renewable Energy Market Renewable Energy Market OverviewOverviewRenewable Energy Market Renewable Energy Market OverviewOverview
Value of world’s power generated from renewable energy estimated at $7 billion, up Value of world’s power generated from renewable energy estimated at $7 billion, up from $1 billion in 1990; projections for $82 billion by 2010.from $1 billion in 1990; projections for $82 billion by 2010.
Renewable energy exports grew from $758MM in ’02 to $1.04 billion in ‘04 Renewable energy exports grew from $758MM in ’02 to $1.04 billion in ‘04
Leading Export Sectors:Leading Export Sectors:
Since 1998, wind energy fastest growing new source of electricity; 30% average per Since 1998, wind energy fastest growing new source of electricity; 30% average per year growth, total market now at $4 billion.year growth, total market now at $4 billion.
Danish turbines account for 60% of current U.S. capacity, U.S. firms have 30% small Danish turbines account for 60% of current U.S. capacity, U.S. firms have 30% small wind market share.wind market share.
Top 5 markets: Germany, Spain, U.S., Denmark, IndiaTop 5 markets: Germany, Spain, U.S., Denmark, India
Solar photovoltaics total market now at $2.5 billion.Solar photovoltaics total market now at $2.5 billion.
Cost of solar power fell 65% from 1990 to 2000, to 40 cents/kw; est. that cost will Cost of solar power fell 65% from 1990 to 2000, to 40 cents/kw; est. that cost will fall to 10 cents/kw by 2010.fall to 10 cents/kw by 2010.
In 1996, U.S. the world leader in photovoltaics with 40% global market share, Japan In 1996, U.S. the world leader in photovoltaics with 40% global market share, Japan now world’s leader with 45%.now world’s leader with 45%.
U.S. exports 60% of its total productionU.S. exports 60% of its total production
Top markets for U.S. exports: Germany (50%), Hong Kong, Spain, Japan, MexicoTop markets for U.S. exports: Germany (50%), Hong Kong, Spain, Japan, Mexico
Ex-Im Bank Financing Ex-Im Bank Financing ProductsProductsEx-Im Bank Financing Ex-Im Bank Financing ProductsProducts
A wide variety of products to meet a diverse range of A wide variety of products to meet a diverse range of environmental dealsenvironmental deals
pre-export finance – working capital guarantee programpre-export finance – working capital guarantee program
short term financing – insuranceshort term financing – insurance
medium term financing – insurance & loan guaranteesmedium term financing – insurance & loan guarantees
long term financing – loan guaranteeslong term financing – loan guarantees
Insurance PoliciesInsurance PoliciesInsurance PoliciesInsurance PoliciesShort-Term (Payments up to 180 days, exceptionally 360 days)Short-Term (Payments up to 180 days, exceptionally 360 days)
Multi-buyer Single-buyer Small Business Multi-Buyer Policies:
New-To-Export, Environmental
BankBank Letter of Credit Financial Institution Buyer Credit Financial Institution Supplier Credit
LeasingLeasing Operating Financing
Medium-Term (1-5 year payments, exceptionally 7 years)Medium-Term (1-5 year payments, exceptionally 7 years) Single buyer
Southwest Windpower, Southwest Windpower, Inc.Inc.Southwest Windpower, Southwest Windpower, Inc.Inc.
Southwest Windpower, Inc., a small business in Flagstaff, Arizona that exports battery-Southwest Windpower, Inc., a small business in Flagstaff, Arizona that exports battery-charging wind turbines to more than 50 countries.charging wind turbines to more than 50 countries.
Southwest Windpower generates more than 50% of its revenues from export sales.Southwest Windpower generates more than 50% of its revenues from export sales.
Challenge:Challenge: Southwest Windpower needs to offer credit terms to a number of small Southwest Windpower needs to offer credit terms to a number of small distributors in diverse foreign markets.distributors in diverse foreign markets.
Solution: Ex-Im Bank’s Environmental Small Business Multi-buyer Credit Insurance Solution: Ex-Im Bank’s Environmental Small Business Multi-buyer Credit Insurance enables Southwest Windpower to offer “open account” credit terms to its distributors enables Southwest Windpower to offer “open account” credit terms to its distributors that enables them to place larger orders, and in turn offer credit to local customers.that enables them to place larger orders, and in turn offer credit to local customers.
Southwest Windpower turbines likely qualify for longer termsSouthwest Windpower turbines likely qualify for longer terms
Loan Guarantee ProgramLoan Guarantee ProgramLoan Guarantee ProgramLoan Guarantee Program
Guaranteed LoansGuaranteed Loans made by commercial banks (U.S. or foreign) to a foreign buyer with a 100% made by commercial banks (U.S. or foreign) to a foreign buyer with a 100% unconditional repayment guarantee from Ex-Im Bank unconditional repayment guarantee from Ex-Im Bank
Guarantee covers 85% of the U.S. content of the transaction.Guarantee covers 85% of the U.S. content of the transaction.
Negotiated interest rates, usually a floating rate based on spread over 6-month U.S. dollar Negotiated interest rates, usually a floating rate based on spread over 6-month U.S. dollar LIBOR rateLIBOR rate
Loan fully transferable, can be securitizedLoan fully transferable, can be securitized
Banks often finance the 15% required cash paymentBanks often finance the 15% required cash payment
Guarantee available in Euros, other currenciesGuarantee available in Euros, other currencies
Working Capital GuaranteeWorking Capital GuaranteeWorking Capital GuaranteeWorking Capital GuaranteeEx-Im Bank provides 90-100% repayment Guarantee for working capital loans, revolving or transaction 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.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 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.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 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 Enables exporters to cover standby letters of credit for bid and performance bonds, or payment guarantees.guarantees.
Enables the exporters to finance foreign sales receivables.Enables the exporters to finance foreign sales receivables.
Most Working Capital Guarantees provided by Delegated Authority Lenders without prior Ex-Im Bank Most Working Capital Guarantees provided by Delegated Authority Lenders without prior Ex-Im Bank approval.approval.
Case Study: PowerLight Case Study: PowerLight Corp.Corp.Case Study: PowerLight Case Study: PowerLight Corp.Corp.
PowerLight of Berkeley, CA received a $5 million working capital loan made possible through PowerLight of Berkeley, CA received a $5 million working capital loan made possible through Ex-Im Bank’s Working Capital Guarantee Program (“WCGP”).Ex-Im Bank’s Working Capital Guarantee Program (“WCGP”).
PowerLight is using the working capital line of to finance the $50+ million export sale of solar PowerLight is using the working capital line of to finance the $50+ million export sale of solar tracking technology to Bavaria Solarpark, the world's largest solar electric project! tracking technology to Bavaria Solarpark, the world's largest solar electric project!
The project will generate 10 megawatts of electricity, enough to power 9,000 homes in the The project will generate 10 megawatts of electricity, enough to power 9,000 homes in the region, supported by a 20-year power purchase from the German government. . region, supported by a 20-year power purchase from the German government. .
Union Bank of CaliforniaUnion Bank of California, an Ex-Im Bank delegated authority lender, provided the loan and , an Ex-Im Bank delegated authority lender, provided the loan and will receive Ex-Im Bank's Guarantee when the loan is processed.will receive Ex-Im Bank's Guarantee when the loan is processed.
PowerLight is using the working capital line in part to post a 10% performance bond as PowerLight is using the working capital line in part to post a 10% performance bond as required by Bavaria Solar.required by Bavaria Solar.
ConclusionConclusionConclusionConclusion
We have the right product to meet your export needsWe have the right product to meet your export needs
Ex-Im can finance any size dealEx-Im can finance any size deal
Focused on increasing environmental exports – using resources throughout the bankFocused on increasing environmental exports – using resources throughout the bank
New 15 year termsNew 15 year terms
Ex-Im Bank supports short, medium, and long-term financing to creditworthy Ex-Im Bank supports short, medium, and long-term financing to creditworthy international customers, and working capital guarantees to U.S. exporters.international customers, and working capital guarantees to U.S. exporters.
Ex-Im Bank is focused on increasing its support for environmental exports.Ex-Im Bank is focused on increasing its support for environmental exports.
New 15-year repayment terms offer a strong enhancement for renewable energy and New 15-year repayment terms offer a strong enhancement for renewable energy and water technologies exports.water technologies exports.
BRING US A DEAL!BRING US A DEAL!
InternetInternet http://www.http://www.eximexim..govgov