Ex-Im Bank Approves $1.5 Billion to Finance Energy Equipment and Services to Mexico
Financing Supports 6,800 U.S. Jobs
WASHINGTON, Aug. 29, 2013 /PRNewswire-USNewswire/ -- The Export-Import Bank of the United States (Ex-Im Bank) has authorized $1.5 billion of export financing in a pair of transactions to support the export of U.S. goods and services to Petroleos Mexicanos (Pemex), Mexico's national oil and gas company.
For the second time, Pemex will issue Ex-Im Bank-guaranteed bonds in the capital markets to fund the transactions. In the event the funding cost is prohibitive, Pemex may exercise an option to seek Ex-Im Bank direct loans priced at Commercial Interest Reference Rates.
Ex-Im Bank's financing will support approximately 6,800 U.S. jobs spread across about 10 states, according to bank estimates derived from Departments of Commerce and Labor data and methodology. The procurement includes oil and gas field drilling services, drilling platforms, equipment rentals, pumps, well-completion services, associated spare parts and chemicals, geophysical services and safety equipment.
"These two transactions will increase the flow of American exports to one of our neighbors and in the process support large- and small-business jobs across America," said Ex-Im Bank Chairman and President Fred P. Hochberg. "It is clear that the 'Made in America' brand is valued now more than ever."
Detcon Inc., a small-business that will benefit from the transaction, designs and manufactures a wide range of industrial grade fixed gas detectors, control systems, pipeline analyzers, and wireless technology. The company, which is headquartered in The Woodlands, Texas, employs about 90 people.
"Detcon is proud of its association with Pemex," said Adam Markin, Detcon's CEO. "Ex-Im Bank's support of Pemex in this transaction is a large help to smaller U.S.-based companies like Detcon and to their jobs."
Since 1998, Ex-Im Bank has approved approximately $13.5 billion in financing to support Pemex's activities.
ABOUT EX-IM BANK:
Ex-Im Bank is an independent federal agency that creates and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years (from Fiscal Year 2008), Ex-Im Bank has earned for U.S. taxpayers nearly $1.6 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 $35.8 billion in total authorizations in FY 2012 – an all-time Ex-Im record. This total includes more than $6.1 billion directly supporting small-business export sales – also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $50 billion in U.S. export sales and approximately 255,000 American jobs in communities across the country. For more information, visit www.exim.gov.
SOURCE Export-Import Bank of the United States