The guarantee covers financing fees and project-related costs in the buyer’s country in addition to the sale price.
GE Packaged Power, Inc, Houston, and other US suppliers are selling a LM6000 gas turbine generator set and related equipment to the Bis Enerji Power Plant, Bursa, Turkey, to enable the buyer to increase its electrical power generation capacity by 20%. US suppliers include The Trane Company, Inc, LaCrosse, WI, and WahlcoMetroflex, In., Lewiston, ME.
The guaranteed lender on the transaction is First International Bank NA, Hartford, CT. Giek’s board has agreed to reinsure Ex-Im Bank for US$5.5mn of the total financed amount to cover the Norwegian portion of exports under the transaction. It is the second co-financing by Ex-Im Bank with Giek.
“Co-operative efforts with fellow export credit agencies open up opportunities for U.S. exporters to participate in multi-sourced international transactions,” says Ex-Im vice-chairman Eduardo Aguirre. “In addition, this one-stop-shop approach to financing makes it easier for foreign customers such as Turkey to obtain credit.”
Ex-Im Bank’s co-financing programme allows the buyer to submit one application but obtain financing from multiple export credit agencies.
Turkey is one of Ex-Im Bank’s largest markets, with exposure totalling approximately US$3.3bn. In fiscal year 2002, Ex-Im authorised about US$282mn in financing in support of US exports to Turkey.