WASHINGTON, Dec. 17, 2010 /PRNewswire-USNewswire/ -- Businesses in the United States will potentially benefit from an agreement signed here that is intended to increase the sales of U.S. goods and services to China and other potential markets. The document was signed by Fred P. Hochberg, chairman and president of the Export-Import Bank of the United States (Ex-Im Bank) and Li Xiaopeng, chairman of ICBC Financial Leasing Co., Ltd.
"This agreement reflects our commitment to build a strong relationship with ICBC Leasing, enabling us to better pursue our common goals and objectives," Hochberg said. "In the process businesses, workers and consumers in both countries stand to benefit."
Ex-Im Bank and ICBC Leasing intend to exchange information on a broad range of trade and business opportunities of which they become aware, with aviation sales of particular interest. Between 1992 and 2001, Ex-Im Bank supported more than $6 billion in aircraft financing to 15 different airlines in the Peoples Republic of China (PRC), enabling them to purchase more than 150 U.S. commercial aircraft, but no aircraft have been financed by Ex-Im Bank into China since then. The Bank also has never financed the sale of a business aircraft or helicopter into the PRC.
"We think ICBC can help foster Ex-Im's return to the aviation financing market in China," Hochberg said, "and we can assist ICBC as it broadens its business focus beyond China to airlines and companies around the world."
ICBC Leasing is wholly owned by the Industrial and Commercial Bank of China (ICBC). Li Xiaopeng is also an executive vice-president of ICBC, which according to reports is the largest commercial bank in the world by market value, assets, profitability and customer deposits.
Li said, "The cooperation between the two institutions can promote the economic development of the U.S. and China and help in balancing the trade of our two countries; definitely an important break-through mutually."
ICBC Leasing was established in November 2007 as a wholly owned non-bank financial institution of ICBC and is now the largest financial leasing company in China with RMB5 billion paid-up capital and assets in aviation, shipping and other major industries of a value of more than RMB50 billion.
Ex-Im Bank's current aviation portfolio consists of approximately 875 large commercial aircraft for almost 70 airlines and operating lessors in more than 50 countries (as of September 30, 2010). The aggregate amount of outstanding guarantees and loans included in the aviation portfolio is approximately $35 billion.
Ex-Im Bank, an independent, self-sustaining federal agency, helps create and maintain American jobs by filling gaps in export financing and strengthening U.S. export competitiveness. In fiscal year 2010, the Bank authorized a record high of approximately $24.5 billion in loans, guarantees and insurance supporting about 230,000 American jobs. For more information on Ex-Im Bank, visit www.exim.gov.
SOURCE Export-Import Bank of the United States