The Export-Import Bank of the United States

The U.S. Export-Import Bank is the official agency of credit for exportation of the United States. It was created in 1934 to facilitate the financing of exportation of North American goods, products and services. Its functions are to provide risk covering with the intention of encouraging the funding banks to provide long stated periods of payments and attractive interests to the importers and to assure the loans granted by a private bank. It does not compete with commercial banks and its credit transactions are based on the financial capacity of payment of the importer (reasonable assurance of repayment).

The U.S. Export-Import Bank considers the following factors of eligibility for its financings:

Content

• The content of North American goods and services must be at least 50%;
• All types of machines and equipments, new or used;
• Some engineering and consulting services associated to the goods can also be financed.

Credit Value

• From US$ 1,000,000.00;
• This value may include more than one shipment and more than a supplier.

Funding value

• The minor of the following values:
85% of the contract value (EXW, FOB, CIF);
100% of the North American content;
• Possibility to fund a percentage of the local costs.

Stated periods

• Normally five years;
• Up to seven years for medical equipment or 12 years for equipment with environmental benefits.

Grace Period

First installment maturing 6 months after shipment;

Possibility of additional grace period, being analyzed each specific case (up to 9 months).

Amortization

Semester installments of principal plus interest.

•Libor + Spread;

• Option for fixed or variable rate of interest;
• Variable rate based on six months LIBOR plus a previously negotiated spread between the customer and the private bank.

Ex-Im Bank Exposure Fee

• Determined by Ex-Im Bank based on the terms and conditions of the financing and the risk of each country;
• Defined as a percentage of the financing and that may be part of the credit.

Private Bank Commissions

• Based on the value and characteristics of the credit.

Benefits for the Importer

•Competitive interest rates, normally more favorable than those offered by local financial institutions;
• Option for fixed or variable rate of interests;
• Financing granted directly to the importer without the necessity of guarantee or letter of credit of local bank;
• Financing without the requirement of real securities;
• Semester installments;
• Stated periods of up to five years;
• Grace period for the installation of the equipment;
• Possibility of prepayment without penalties.

Necessary information

• Complete financial statements of the last three years in Portuguese or in English;
• If the value of the credit is higher than US$ 1 million, the financial statements must be audit;
• The company must have been profitable for the past two years;
• The value of the credit does may not be higher than 40% of the equity;
• Description of the project;
• Invoice proforms or estimate of cost, suppliers, esteem dates and frequency of shipments;
• Two banking references and two commercial ones, certifying the good commercial relation and idoneousness of the customer.

Basic requirements for the Resource Borrower (Requirements)

• Time of existence in the business;
• Sales and Incomes;
• To be historically successful in taking resources in banks and honoring the commitments;
• To be income-producing company with low indebtedness;
• Meet international standards of accounting;
• To be audit by companies at least affiliated to the main audit companies.

Attributions of M&T Bank:

• Management of the transaction approval process together with Ex-Im Bank;
• Management of the transaction internal approval;
• Management of the loan documentation;
• Management of the process of loan outlay;
• Management of the collection process.