US Exim has renewed the terms of the supply chain finance programme it first set up with Citi Bank in 2010.
The agreement will see the bank guarantee 90% of up to US$100mn of liquidity from Citi to supplier of agricultural and construction equipment manufacturer CNH America.
The transaction lets Citi purchase accounts receivable owned by US suppliers and due from CNH, providing CNH with working capital that supports multiple exports of its equipment, as orders are received.
Fred Hochberg, US Exim’s chairman and president says: “Exim Bank’s second renewal of this Citibank facility for CNH suppliers demonstrates our continued support for the small businesses that serve as reliable suppliers of US exporters. This financing enables them to improve cash flow to increase sales and sustain jobs.”
The facility is being provided under US Exim’s supply chain finance guarantee programme, which aids small-business suppliers of US exporters obtain access to capital more quickly to fulfil new orders.
Commenting on the renewed guarantee, John Ahearn, Citi’s global head of trade says: “This facility supports millions of dollars in export sales and enables hundreds of small businesses to access affordable financing while providing an important liquidity management tool for CNH.”