US small businesses comprise 100% of a US$115mn sale of equipment and services to Petroleos Mexicanos (Pemex), backed by a US Ex-Im Bank loan guarantee approved recently.
Banco Santander Central Hispano, New York, is the guaranteed lender on the Ex-Im Bank US$100mn small business facility. The financing supports participation by over 200 US small businesses in Pemex’s ongoing development of its four primary projects: Cantarell, Burgos Basin, the New Pidiregas Projects (NPP), and the Strategic Gas Program (PEG).
Small businesses have participated significantly in recent US Ex-Im Bank-supported export transactions with Pemex on these four projects. But this is the first transaction involving only small business exports.
“We created this vehicle to finance Pemex’s current and future purchases from US small businesses,” says Ex-Im chairman and president James Lambright. “Ex-Im Bank and Pemex both believe that small businesses can be just as competitive as large companies.”
“The announcement of this facility will help increase awareness of Pemex projects among other potential US small business exporters,” Arturo Delpech, Pemex manager of trade finance, comments. “We believe small business participation will grow. If US Ex-Im agrees, we probably can request another US$100mn small business facility next year, or even increase the amount.”
Over the past six years, Ex-Im has approved US$6.33bn in financing in support of US exports to Pemex.