Financing Resources for Overseas Energy Projects Export Financing Opportunities #ConnWeek Annie Pan / Edward Tang November 24 25, 2011 ConnectivityWeek 2011
Environmental Technologies Export $35.7 Billion total export in 2009 $2 Billion Renewable Energy, 15% is supported with EXIM Bank guaranty One of the few industries that s winning the trade battle for the U.S. Top three countries: Canada, Mexico, China Supporting 4 million Jobs California is the 2 nd largest exporting state ConnectivityWeek 2011 #ConnWeek Santa Clara, CA May 23-26, 2011 2
GBC International Bank Organized in 1972 as First Women s Bank of Los Angeles Full service commercial bank that is known for customizing solution for clients Eight branches throughout the West Coast Ranked as #1 on return on equity and #12 on overall performance amongst 243 California Banks in 2010. 20113
EXIM Bank, SBA and GBC International Bank Export-Import Bank of the United States and Small Business Administration provide guarantees to lenders GBC International Bank is $5MM High Level Delegated Authority Lender under EXIM One of nine PLP Lenders under SBA EWCP and Export Express More than 15 years of EXIM lending experience GBC International Bank was Named as Western Region Lender of the Year 20114
Export Working Capital Program Transaction Specific To finance one-time identifiable transaction Transaction Specific Revolving To finance multiple identifiable transactions Non-Transaction Specific Revolving To finance general export-related A/R and exportrelated inventory 20115
Export Working Capital Program Benefits: Fulfill export sales orders Finance Hard costs and Soft costs Turn export-related inventory and accounts receivable into cash Don t wait for 180 days to collect your money Expand access to financing Enhance your advance rate Up to 90% on eligible A/R Up to 75% on eligible Inventory Finance Bid and/or Performance Bonds Enhance credibility to VC & Angel Investors 20116
Eligible Criteria for EXIM Eligible exporters: Must be located in the United States Must have at least a one-year operating history Must have a positive net worth Financial ratios must meet RMA minimum 4 out of 7 Indirect exporters is now eligible Eligible exports: Must be shipped from the United States Products must have at least 50% U.S. content. (If less than 50%, then Ex-Im Bank can only support the export up to the percent of the U.S. content.) Services must be performed by U.S.-based personnel. No military or defense items Country Limitation Schedule 20117
Case Study A buyer in Mexico placed a purchase order for 10MW lithium-ion energy storage system valued at USD $18 million Your total cost is $12 million to be incurred over 15 month, which includes raw material, equipments, design, manufacturing labor, engineering & installation. Progressive payment term with each milestone based on sight L/C. 10% of total contract value is required for the Performance Bond issued to current buyer. 20118
The Solution An Ex-Im transaction specific line of credit for pre-shipment financing up to 75% of the cost incurred each stage to pay for raw material, equipments, and other soft costs for export, and for issuance of performance bond in standby L/C. Each advance is to be paid upon collection of each sight L/C proceeds. Bank will require additional collateral for at least 25% of face value of the performance bond (10% with EXIM approval). 20119
Contact Information Annie Pan, Executive Vice President (626) 243-1180 apan@gbcib.com Edward Tang, Vice President (626) 243-1183 etang@gbcib.com (626) 664-2219 Cell Derek Lee, Assistant Vice President (951) 894-8172 dlee@gbcib.com (626) 616-6266 Cell 2011 10