US Ex-Im takes first steps into Slovakia

The Export-Import Bank of the United States (US Ex-Im) has approved a US$20mn loan guarantee for a turbine generator in its first long-term financing of US exports to Slovakia.

Slovakian engineering and construction firm Istroenergo Group , will transfer GE energy’s LM6000 aeroderivative gas turbine generator to Teplaren, a subsidiary of Gafobal Group Energy (GGE).

Teplaren will use the turbine in a power plant in Povazska Bystrica, a town in north western Slovakia, to modernise its existing central heating system to a combined heat and power station that is able to supply up to 60 megawatts of electricity and heat approximately 8,000 households in the town.

This is US Ex-Im’s first transaction with GGE, a holding company involved in energy, media, printing and packaging businesses.
US Ex-Im chairman and president Fred Hochberg emphasised the mutual benefits of the deal, saying: “This transaction can lead to more opportunities for the US capital-equipment and energy companies to successfully compete in Slovakia and other growing Central and Eastern European markets. It will sustain US jobs and help Slovakia meet power needs.”

The bank will guarantee 83%of the total financing request, with the remainder of the loan guaranteed by the Hungary Export-Import Bank (Hexim). The guaranteed lender is the private export funding corporation with GE Capital Markets Services acting as the arranger advisor.