EXIM Board Approves $18 million Loan Guarantee to Support Export of Oil and Gas Services Equipment to Argentina
EXIM Financing Will Support Estimated 100 U.S. Jobs at Small Businesses in Colorado, Pennsylvania, and Texas; Board Members also Review Ongoing Small Business Enhancements
Washington, D.C. – Today, the Export-Import Bank of the United States (EXIM) Board of Directors unanimously approved an $18.4 million loan guarantee that will directly support three U.S. small businesses. The medium-term loan guarantee will assist with the export of U.S. goods and services to be utilized in development of the Vaca Muerta Formation in Argentina, which will support 100 American jobs between Colorado, Pennsylvania, and Texas. It also will support the Trump Administration’s initiative to encourage infrastructure and energy investments in Latin America called América Crece (link is external) – Growth in the Americas.
The borrower and end user of the equipment that will be supplied by the U.S. companies is A-Evangelista S.A. (AESA) of Buenos Aires, Argentina. ASEA is a wholly owned subsidiary of YPF S.A., Argentina’s leading energy company. AESA will use the financing to procure oil and gas services equipment from three U.S. small businesses: Proppant Express Solutions of Denver, Colorado; Sun Energy Services of Zelienople, Pennsylvania; and Wildcat Oil Tools of Midland, Texas.
“EXIM is proud to provide the financial backing to support these American jobs and help U.S. companies expand their customer relationships in a strategically important market,” said EXIM President and Chairman Kimberly A. Reed. “Without EXIM support, the buyer would turn away from American suppliers toward a foreign competitor readily able to access export credit support, such as China, which is a known supplier for this type of equipment.”
“EXIM has been supporting transformational projects in Latin America since 1934,” said EXIM Board Member Spencer Bachus III. “The project that we approved in Argentina today furthers EXIM’s commitment to the people of Latin America, and it extends the reach of American companies around the world.”
Also today, the Board of Directors discussed initiatives aimed at developing and implementing key product innovations in the Office of Small Business, where more than 89 percent of EXIM’s transactions take place in support of the nation’s small businesses.
The Board of Directors received an update from Senior Vice President of Small Business Jim Burrows, Vice President of Business Credit Steven Freshour, and Director of Broker Relations and Product Development Edward Coppola. They outlined new products and product enhancements for export credit insurance and working capital guarantees that would benefit exporters, insurance brokers and underwriters, and lenders. EXIM is considering several product innovations to be introduced into market in the near future.
These steps by the Office of Small Business correlate with EXIM’s ongoing efforts to increase small business’ access to EXIM products and help American small businesses compete and win around the globe. Since May 2019, EXIM has completed more than 1,400 small business transactions, totaling nearly $1.48 billion in authorizations and supporting an estimated 12,000 U.S. jobs.