So what do deals with Ex-Im Bank look like?
Recently, the Bank recognized positive developments in the banking sector of Nigeria that have allowed us to respond to increasing demand for financing both from U.S. exporters to Nigeria and their Nigerian buyers. We approved a total of $300 million, allocated among 14 Nigerian banks, to support U.S. exports that will help growing business opportunities in the Nigerian market.
Each of the 14 banks has been pre-approved for amounts of $10 million and higher, which may be renewed. The Nigerian banks are not limited to the new financing facility and are eligible to apply for additional Ex-Im Bank financing under other programs.
At Ex-Im Bank, we’re committed to finding creative approaches to the financing needs of Africa. In the cases where local companies do not meet our regular credit standards, for example, we are developing new financing structures that will enhance local company credit and debt capacity and ensure that the debt is repaid through third-party contractual payments.
A look at a specific transaction we made in Nigeria illustrates the far-reaching benefits of supporting trade.
Xechem [Z-Kem] Pharmaceuticals Nigeria, Limited, wanted to build a state-of-the-art pharmaceutical facility in Sheda, Federal Capital Territory, Abuja, Nigeria. For the new location, the company wanted U.S.-built plant equipment and machinery. For this, Ex-Im Bank provided a comprehensive guarantee for a $9.4 million loan, which funded about three-quarters of the project’s total cost.
Now this plant manufactures Nicosan, Xechem’s breakthrough medicine that helps manage Sickle Cell Disease. Nigeria’s National Agency for Food and Drug Administration and Control approved the sales of Nicosan on July 3, 2006 and we hope the drug lives up to its great promise, making a significant difference in the quality of life on the continent.
AI
