Introduction to Infrastructure Financing Capabilities February 28, 2016
EXIM TOOLS for EXPORTERS Export Credit Insurance Credit, protect against buyer nonpayment, and improve cash flow o Minimize political and commercial risks of buyer nonpayment (up to 95 percent) o Allow open account credit terms to customers (up to 360 days) Working Capital Guarantees Credit lines for small and medium-sized sub-contractors/suppliers for WC to fulfill export orders and establish bid or performance bonds o Converts international A/R, WIP and inventory into eligible collateral for loans Supply Chain Finance Payables financing program to enhance Supplier relationships o Leverages Exporter s credit capacity to accelerate cash flow for Suppliers Term Financing Customer Sales Finance (Buyer Credits) o Corporate Credits and Bank or Sovereign supported loan programs o Structured Finance and Limited Recourse Project Finance 2
BENEFITS of EXIM BANK INVOLVEMENT Capacity - Rated Best Capacity in TFX Survey of all major ECAs - No maximum country limits or deal size limits Best Practices - Validates project s application of international best practices in financial structuring, documentation, and environmental and social impact standards funding options, including commercial banks, PEFCO, and capital markets issues Direct Fixed-Rate Lending - Direct Loans at fixedrate CIRR* based on US Treasury index Industry Expertise Long experience in the business-critical points in deal structuring ensures timely and efficient completion 3 Guaranteed Loans - Comprehensive coverage for 100% of political and commercial risk, with multiple * CIRR as of : Long Term Financing for up to 10 years at 3.23% Project Finance for up to 14 years at 3.50%
4 GENERAL PROGRAM REQUIREMENTS
EXIM FUNDING OPTIONS G teed Lender Guarantee Cap Mkts Direct Loan(s) Agent Bank Guaranteed Loan(s) Notes Issue(s) Agent Services Guarantee PSOR PSOR PSOR Direct Loan Guaranteed Loan Capital Markets 5
EXIM GUARANTEED NOTES Issuers have achieved pricing below CIRR $25 billion issued to date via 160 separate offerings a well established market Direct access to USD capital markets Exempt securities require no SEC registration Borrower achieves visibility as capital markets issuer, but with limited disclosure requirement High quality Ex-Im guarantee and standardized format facilitate execution no need for investor roadshow Applicable to major procurement programs and project finance transactions with differing maturities 6
EXIM GUARANTEED NOTES Disclosure - Requires no description of the underlying project, and no description of the Borrower s business or finances but provides full visibility to Borrower as issuer in the capital markets Ratings - reflect the USG full faith and credit standing of EXIM Bank s guarantee Funding - Offers flexibility to fund via Reimbursement, takeout of Bridge Loan, or Pre-funding structures Currency G teed Notes have been denominated in USD, Yen and Euro 7
STRUCTURED & PROJECT FINANCE Typical Terms under OECD Guidelines 8
NOTIONAL AUTHORIZATION TIMELINE - PF Process for Limited Recourse PF Transactions Week 1 2 3 4 5 +1 +2 +3 +4 +5 +6 +7 +8 +1 +2 +3 +4 +5 +6 +7 +8 +9 +10 +11 +12 +13 +14 Letter of Interest Application (optional) Application for Final Commitment Assignment of SFD Project Team Advisors and Counsel Retained Phase I Fatal Flaw Analysis Preliminary Project Letter (if required) Due Diligence Resolution of Key Terms Internal TRC Briefings Preparation of Board Memo Board Briefing and Initial Action Congressional Notice Period Final Board Action Documentation Process Satisfaction of Conditions Precedent Letter of Interest Application* Preliminary Project Letter* Congressional Notice Period Formal Application Received Due Diligence and Resolution of Key Terms Final Board Action Assignment of SFD Project Team Internal Briefing to TRC Documentation Process Advisors and Counsel Retained Preparation of Board Memo Satisfaction of Conditions Precedent Phase I Fatal Flaw Analysis Board Briefing and Initial Action Initial Disbursements *Optional 15
FINANCING for PURCHASES OF US-PROVIDED SERVICES A substantial portion of SFD business is driven by engineering service providers and contractors being asked to provide tied financing proposals EXIM Bank supports services exports across a full range of sectors, led by Engineering & Consulting, Oil & Gas and Mining EXIM Bank can cover consulting, design, engineering, project management, and other services performed by US employees Coverage for other eligible services can include technology transfers, licensing, royalties, etc. Since 2010, the aggregate amount of Services financed by EXIM Bank totaled $19.25 billion 10
SPECIAL PRODUCTS: SERVICES The Engineering Multiplier Program for Engineer/Contractor: Business Development tool Multiplier Effect Supports early stage contracts with potential to generate larger follow-on contracts during project implementation phases for Project Sponsor/Developer: Interim Financing Tool Funding before FID Financing for project s upfront development costs - with minimal cash outlay; facilitates progress toward FID and project contracts Coverage - Buyer financing for US contracts during project development phase, including feasibility studies, exploration and mapping, and other design, engineering, and architect services, plus additional support for up to 30% of US contract price to cover related local costs Terms initially, 5 year tenor with no repayments until after completion of services, along with the potential to roll over (re-finance and extend) into the longer term project financing 11
SECTOR EXPERTISE AIRPORTS AND INFRASTRUCTURE Airports: Quito, Ecuador airport ($64 million - project finance) Grupo Aeroportuario del Centro Norte (OMA) ($24 million, Mexico, fire trucks, baggage handling equipment and security inspection systems) Air Traffic Mgmt/Air Traffic Control: Albcontrol/NATA ($48 million, Albania, highly structured public sector, non-sovereign) Georgia ATC ($16.7 million, Georgia s State Enterprise Sakaeronavigatsia, structured public sector, TDA-feasibility study supported) 12
2015 Export-Import Bank of the United States www.exim.gov