Ex-Im Bank to Provide $108 Million in Financing for Sale of American Locomotives to South Africa
Transaction Brings Ex-Im's Transnet Financing Total to $230 Million, Will Help Support both American and South African jobs
WASHINGTON, July 8, 2013 /PRNewswire-USNewswire/ -- The Export-Import Bank of the United States (Ex-Im Bank) today announced that Transnet SOC Limited (Transnet), a company based in Johannesburg, South Africa, will receive approximately 1.1 billion South African Rand ($108 million) in financing to support the purchase of 53 American-made GE locomotives.
Ex-Im's financing to Transnet will now total $230 million. In February 2011, the Bank approved a Rand 1.1 billion for the sale of 47 GE locomotive kits. Together, the transactions will provide a Rand of 2.2 billion ($230 million) in financing and support the purchase of 100 GE locomotives.
"As the President highlighted on his recent trip, there are enormous opportunities for U.S. exporters in South Africa and across the broader region," said Ex-Im Chairman and President Fred P. Hochberg. "Ex-Im Bank will continue to help American companies expand their reach into this dynamic market."
"I greatly appreciate Ex-Im's financing arrangements for this sale, which supports jobs in the United States and South Africa," said Lorenzo Simonelli, president & CEO of GE Transportation. "Exim financing is essential to maintaining the competitiveness of quality American products in the face of government-supported foreign competition. I am excited at the prospect of Ex-Im helping to finance another American sale in Transnet's next locomotive purchase, scheduled for later this year."
Ex-Im Bank developed a customized, tailor-made financing solution that was designed specifically to meet the financing needs of Transnet. Barclays Bank PLC of London is the guaranteed loan agent and arranger while Nedbank in Johannesburg will be the funding bank. The loan is guaranteed by Ex-Im Bank and will be denominated in South African Rand.
Transnet is a large South African freight rail, port and pipeline infrastructure company, headquartered in Johannesburg. The company's stock is owned by the Department of Public Enterprises of the South African government. Ex-Im's financing will support Transnet's purchase of GE C30ACI locomotive kits. The kits, which are manufactured in Erie, Pa., are shipped to Transnet facilities in Pretoria, South Africa and assembled by local workers.
South Africa is one of nine key markets Ex-Im Bank has identified as having strong opportunities for U.S. exporters. In FY'12, Ex-Im Bank authorized approximately $130 million in financing to South Africa and the Bank's current exposure is more than $1 billion.
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 (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 nearly $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