Ex-Im Approves $118 Million in Financing to Vietnam for Export of Lockheed Martin Satellite
WASHINGTON, Oct. 1, 2012 /PRNewswire/ -- The board of the Export-Import Bank of the United States (Ex-Im Bank) voted to authorize a $118 million direct loan to the government of Vietnam for the export of a Lockheed Martin Space Systems Company telecommunications satellite and additional goods and services.
The loan, which represents Ex-Im Bank's first satellite transaction with the government of Vietnam, supported approximately 525 full-time equivalent American jobs, according to Lockheed Martin estimates, and financed export sales totalling $215 million.
"As one of our nine key markets, Vietnam affords American companies unique export opportunities," said Ex-Im Bank Chairman and President Fred P. Hochberg. "These opportunities promote economic growth in both countries, which in turn supports American jobs in vital U.S. industries. The satellite transaction in particular reflects the unsurpassed quality of American technology and the demand for it abroad."
The Vietnam Post and Telecommunications Group (VNPT), a state-owned enterprise headquartered in Hanoi acting on behalf of the government of Vietnam in the transaction, hopes to satisfy the growing demand of telecommunications and television markets emerging in the region.
"By providing financing for Vietnam Posts and Telecommunications Group, this Ex-Im Bank loan supports U.S. manufactured satellites and U.S. jobs," said Linda Reiners, Lockheed Martin Space Systems Commercial Ventures vice-president. "We congratulate our long-term customer VNPT, with whom we have now partnered in the manufacturing of two satellites."
The satellite, VINASAT-2, is a geosynchronous satellite that was launched May 15 and recently completed a series of in-orbit testing. Equipped with a payload of 24 active Ku-band transponders, the satellite provides coverage to Vietnam, Cambodia, Laos, and Thailand.
BNP Paribas will serve as the documentation agent and letter-of-credit bank.
As of the end of FY 2011, Ex-Im Bank's credit exposure in Vietnam accounted for $185 million of the Bank's portfolio.
In FY 2012, Ex-Im Bank authorized approximately $1.4 billion to support U.S. satellite exports, exceeding its financing for the industry in FY 2011.
Ex-Im Bank considered the transaction only after receiving presidential approval to do so. According to the Bank's Charter, the president must first determine if an Ex-Im Bank loan of $50 million or more to a Marxist-Leninist country is in the national interest before the Bank's board can vote on the transaction.
About Ex-Im Bank:
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers $1.9 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance, and financing to help foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 -- an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales -- also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $41 billion in U.S. export sales and approximately 290,000 American jobs in communities across the country. For more information, visit www.exim.gov.
SOURCE Export-Import Bank of the United States