Ex-Im Bank approves $110 million in financing
The U.S. Export-Import Bank of the United States has approved the first transaction under its new Supply-Chain Finance Guarantee Program, a 90 percent guarantee to support up to $100 million of liquidity from Citibank N.A. to small and medium-sized suppliers of CNH America LLC in Burr Ridge, Ill.
The program provides competitively priced working capital finance to suppliers of U.S. exporters, particularly small and medium-sized enterprises, the bank said.
The transaction approved by Ex-Im Bank’s board allows Citi to purchase accounts receivable owned by U.S. suppliers and due from CNH. These accounts receivable are related to purchases of goods and services by CNH for its export-related production.
“Our supply-chain finance guarantee is an innovative product that provides liquidity and strengthens the U.S. export supply chain to help create and maintain jobs, especially for small-business suppliers,' Ex-Im Bank Chairman and President Fred P. Hochberg said.
“Ex-Im Bank’s guarantee will provide CNH’s suppliers in the United States with the opportunity for increased cash flow to ensure their ongoing growth and financial health,” added CNH President and Chief Executive Officer Harold Boyanovsky.
To participate in the program, approved lenders must have an existing supply-chain finance program. Ex-Im Bank requires that at least 50 percent of the credit provided under the program be extended to suppliers meeting the small-business definition of the Small Business Administration by the end of the 12-month term. The end-use products to be exported must meet U.S. content requirements. ' Chris Gillis
Ex-Im Bank approves $110 million in financing
