FINANCING PROGRAM FOR IMPORTS OF MACHINERY, EQUIPMENT, CAPITAL GOODS AND ASSOCIATED SERVICES OF ENGINEERING, INSTALLATION OR CONSULTING

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1 AIRCRAFT FINANCING

2 FINANCING PROGRAM FOR IMPORTS OF MACHINERY, EQUIPMENT, CAPITAL GOODS AND ASSOCIATED SERVICES OF ENGINEERING, INSTALLATION OR CONSULTING

3 PNC Bank elaborates a sound pre-analysis of all applications before its presentation to Eximbank and collaborates hand-to-hand with Eximbank for the approval The Eximbank makes the final credit analysis and is who ultimately approves or declines the application received from PNC Bank Eximbank operates through control desks, credit analysts specialized by industry and different credit committees according to the amount of the credit

4 Cost of EximBank Insurance by Country (5 Years) Argentina Brasil 2.82 Perú 3.09 Colombia 4.20 República Dominicana 5.98 Venezuela NONE Costa Rica 2.82 México 3.62 Chile 1.74

5 FINANCING SCHEMES Loans with PNC Bank resources and soft interest rates as mandated by Eximbank as a policy for this program Eximbank issues an INSURANCE that covers for PNC Bank the political and the commercial risks Maximum 85% of the export invoice amount The buyer must pay the exporter at least for the 15% of the export invoice amount

6 WHO IS ELIGIBLE? End User Importer company Loan terms of 2, 3, 4 and 5 years Up to 7 years for environmental investments or specialized equipment / machinery or credits equal or above to $ 8,000,000 dollars 10 years for imports of $25+ million dollars 12 & 10 years for new airplanes and vessels Distributor of machinery and equipment (Purchase of inventories intermediate importer) Loan terms of 2 years only Terms of 3, 4 and 5 when the distributor operates its own rental fleet and requires financing to support it

7 What Imports Qualify? All sort of machinery and equipment new or used All sort de services (installation, consulting, engineering ) connected with imports above All sort of software (usually for three years) Components, repairs, and parts for installed assets Should be incorporated as a fixed asset of the buyer Should be made in the USA, UK or Canada Should have at least a minimum of 50% content of relevant country import and the rest USA made

8 COST OF EXIMBANK INSURANCE BY COUNTRY (5 YEARS) Argentina Brasil 3.86 Perú 3.86 Colombia 5.27 Guatemala 8.17 Venezuela NONE Costa Rica 3.86 México 3.86 Chile 2.84

9 WHAT WE HAVE FINANCED? Cranes, dollies, excavators, liftweighters Optical fiber, antennas, software... Telecomm equipment, hotel and hospital equipping Trucks, buses, trailers, ambulances Silos, irrigation systems, greenhouses Refrigeration systems, slaughterhouses, food processing Furnaces, airplane engine repairs, airplanes, helicopters, hushkits, locomotives, trains... Waste treatment plants, desalinization plants Furniture, artificial grass, golf courses Engineering, design and other consulting services.

10 WHAT IS EXCLUDED FROM THE PROGRAM? Arms, weaponry and military equipment Working capital (receivables, stock, ) Other countries exports Local purchases and investments Project financing Debt re-structure Purchases made more than 180 days ago

11 TERMS AND CONDITIONS OF THE FINANCING PROGRAM Loan Amount Starting from $500,000 Terms of Payment From 2 up to 5 years. Special cases qualify longer terms Forms of Payment Semi-annual amortizations of principal plus interests. For some project investments PNC Bank can get additional three months of grace period for the first amortization First payment 9 Mos. Interest Rate Indexed to 6-month Libor plus a spread

12 MORE ADVANTAGES!!! Additional grace period for the payment of the first amortization in the case of: Progressive payments when the equipment is custom manufactured... Successive imports arranged as a project investment... Equipment or machinery that requires installation, training and start-up...

13 REQUIREMENTS The company must have at least 3 years operating The applicant should have reported profits in the last two fiscal years The credit can not exceed the 40% of the net worth of the applicant The applicant must have good solvency references commercial & banking No real estate, lien or collateral guarantees Totally unsecured loans

14 REQUIREMENTS FLEXIBILITY? Sometimes a guarantee under the form of an endorsement (co-signer) from a subsidiary may be accepted if the applicant shows a weakness to meet the basic requirements The PNC Bank accepts combined financial statements as prepared by an external auditor when the applicant belongs to a corporate group which do not consolidate for accounting or tax purposes

15 COMPETITIVE ADVANTAGES VAT on interests VAT on principal Withholding Tax Local Bank Mortgage Guarantee Pledge Guarantee Guarantee Deposits Reciprocity Letters of Credit Two payments per year Total Annual Cost <7.50% Option of pre-payment with no penalty charges Approval in 5/6 weeks Quick revision for the credit extension every six months (up to 40% of net worth

16 HOW LONG DOES IT TAKES THE APPROVAL OF THE FINANCING? PNC Bank does the preliminary credit analysis in 10 labor days after receiving the complete financial information and contacting the applicant directly PNC Bank passes the analysis to Eximbank Eximbank takes from 3 to 4 weeks to approve the credit application PNC Bank works hand to hand with the applicant and the Eximbank to expedite and facilitate the credit approval PNC performs as an advisor to the applicant

17 INFORMATION REQUIRED FOR OBTAINING THE CREDIT ALL IN SPANISH FOR LA Financial statements of the last 3 years External auditor certified financial statements with notes if the credit is US$1 million or more Information about the importation project. It can include a variety of equipment, different shipment dates and multiple suppliers Information about the applicant: commercial activities, history, markets, clients, etc.

18 EXIM BANK FUNDS Ex-Im Bank has a mandate to support the financing of exports of goods manufactured in the USA and services provided with US content. The exported products must be made/manufactured and shipped from the USA to qualify for the financing. Cooperation agreements with UK and Canada Governments allow Eximbank to support also the financing of imports with Canadian and UK content.

19 PAYMENT TO THE SUPPLIER The credit is disbursed by paying the supplier for the exports at the time of each shipment against the delivery of the following documents: Exporter s Certificate Copy of the export invoice A letter from the exporter certifying the payment from the buyer for the 15% of the export invoice total cost Copy of the bill of lading

20 IMPORTS VIA A LOCAL DISTRIBUTOR The invoice from the manufacturer for the total cost of the export plus the distributor s commission or markup PNC finances the 85% of the total export invoice value

21 EXPORTER S INVOICE Theprincipal of theequipment Commissions for local distributor Training & installation costs Freight & transportation insurance Fees and costs from shipment agent Spare parts and accesories Maintenance contract NOT DESCRIPTIVE BILLING REQUIRED, JUST A GRAND TOTAL

22 REIMBURSEMENT TO APPLICANT When the import was done at least 120 days before the date of the application to PNC Bank Copy of the export invoice A letter from the exporter certifying that the export invoice has been paid in full Copy of the Bill of Lading

23 FINANCING OF USED EQUIPMENT Report from the exporter or original manufacturer certifying that the equipment was subject to a full functional test within the last two years, and the probable useful life of such equipment Fill up and sign the used equipment form as provided by ExImbank Copy of the quotation or proforma invoice

24 FIRST STEPS To deliver the completed PNC credit application along with the financials of the last three fiscal years and the solved questionnaire of 35 points PNC Bank sends a financing proposal The client signs the proposal as accepted and faxes it to Pittsburgh Pays to PNC a symbolic advance on the banking commission to demonstrate that is interested in continuing the process PNC Bank initiates the credit analysis

25 MID ZISE JETS

26 HELICOPTERS

27 LONG RANGE JETS

Export, Mitigate Risks, Get Paid

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