FINANCING SOLUTIONS FOR 2003 MMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM

FINANCING SOLUTIONS FOR 2003

FINANCING SOLUTIONS FOR 2003

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SSA INTRODUCTIONSSA INTRODUCTION



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Cash Letter of Credit

OPTIONSOPTIONS

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BENEFITS BRING NEWBENEFITS BRING NEW

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Improved Cash Flow Lower Interest Rates Extended Terms Establish Credit Record Become Familiar With EX-IM

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WHAT WE DOWHAT WE DO

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Provide Export Financing Solutions

–Short and Medium Term Insurance

–Medium and Long Term Loan Guarantees

–Structured and Project Finance

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U.S. Trade -Sub-Saharan AfricaU.S. Trade -Sub-Saharan Africa

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TRANSACTION PARTNERSTRANSACTION PARTNERS

Short Term Insurance GuaranteeU.S

Supplier

EX-IMBank

AfricanBuyer

PaymentGoods and ServicesInsurance

Application

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Medium Term Insurance GuaranteeUS

Supplier

EX-IMBank African

Buyer

BankUS

AfricanInternational

Payment

Goods & Services

Loan Guarantee

Application

Financials

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Medium Term Insurance GuaranteeUS

Supplier

EX-IMBank

BankUS

AfricanInt’l

AfricanBuyer

GuarantorBank orCorp.

Loan Guarantee

Application

Goods & Services

Payment

Financials

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FINANCING BENEFITSFINANCING BENEFITS

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Substitutes Full faith and Substitutes Full faith and guarantee of U.S.guarantee of U.S. governmentgovernment for that of the foreign buyer. Thus, all financing becomes domestic.

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SPECIFICS OF CHARTERSPECIFICS OF CHARTER

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Must cover U.S. goods Do not compete with the private sector Reasonable assurance of repayment

Debt service ability

Adequate capitalization

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WHEN USE EX-IM BANKWHEN USE EX-IM BANK

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Long Term Financing

Larger Transactions

Riskiest Transactions

Smallest Transactions

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NEW TIMES / NEW VIEWSNEW TIMES / NEW VIEWS

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We now see the huge potential in Africa

U.S. government will take credit and political risks

Many Africans in the U.S. wanting to sell goods to their homeland

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U.S. exports to Africa$6 billion

U.S. EXPORTS TO SSA IN 2002U.S. EXPORTS TO SSA IN 2002

Worldwide exports to Africa $88 billion

7%

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U.S. Export Comparisons: 2000U.S. Export Comparisons: 2000

U.S. Export Comparisions 2000

$6.8

$3.2

$3.1

$0 $2 $4 $6 $8

Sub-Saharan Africa

Russia and NIS

Eastern Europe

Billion

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CONGRESS INSTRUCTIONSCONGRESS INSTRUCTIONS

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Develop U.S. minority and rural business

Support environmentally beneficial U.S. goods and services.

Support more U.S. exports to Sub-Saharan Africa.

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CY 2002CY 2002

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Completed 127 transactions

for $475 million in 18 countries

in Sub-Saharan Africa

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U.S. Ex-Im’s ProductsU.S. Ex-Im’s Products

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Make it easier for your U.S. supplier to provide you with the terms and financing you need to purchase U.S. goods and services.

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WHAT CAN YOUR PRODUCTS AND SERVICES DO FOR ME?WHAT CAN YOUR PRODUCTS AND SERVICES DO FOR ME?

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Success Story : Nigeria

Ex-Im Bank has approved an $11 million medium-term

guarantee to support the purchase of medical equipment,

supplies and services by Yobe State and Nasarawa State in

northern Nigeria from Adam & Associates International, Inc.,

Brookline, MA. The borrower on this transaction is Bank of

the North. Riggs Bank N.A. is the guaranteed lender.

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Success Story: Kenya

Barclays Bank International, NY received a final commitment

for a 12-year comprehensive guarantee in the amount of

$70,090,986 to support the acquisition by Kenya Airways

Limited of two Boeing 737-700 aircraft, each equipped with

two installed CFM International CFM56-7 engines and

winglets.

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Success Story : Uganda

Recently approved a medium-term comprehensive guarantee

of $750,252 to support the sale of used heavy construction

equipment from Atlas Mercantile, Inc., Silver Spring, MD, to

General Standard Engineering, Ltd. (GSE) of Kampala,

Uganda. This equipment will allow GSE to expand its road

repair and construction business. Worldwide Equipment,

Inc. of Houston, TX is the U.S. supplier. Riggs Bank NA is

the guaranteed lender on this transaction.

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Success Story:Gabon

Edelweiss, Inc. is using an Ex-Im Bank short-term, multi-buyer policy for the sale of $50,000 worth of frozen meat to three companies in Gabon.

BeninEast West Bank will provide a loan for the sale of four used Kenilworth trucks to Societe Africaine de Commerce with the support of a $195,000 medium-term insurance policy from the Ex-Im Bank.


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Provides sub-Saharan Africa with liberal access to the U.S. market .

AGOA provides duty-free treatment for more than 1,800 products.

Ex-Im Bank can help African manufacturers by supporting the financing of purchases of U.S. goods needed to take advantage of AGOA.

(manufacturing equipment, U.S. fabric, yarn and thread for production of apparel)

AFRICA GROWTH & OPPORTUNITY ACTAFRICA GROWTH & OPPORTUNITY ACT

AGOA

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HOW TO APPLYHOW TO APPLY

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U.S. exporter or commercial lender submits application to Ex-Im Bank

Internet: http://www.exim.gov

E-mail: [email protected]

Maureen Scurry, Africa 202-565-3905

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