US to provide financing for Viet Nam satellite project
"As one of our nine key markets, Viet Nam affords American companies unique export opportunities," said Ex-Im Bank Chairman and President Fred P Hochberg.
The loan, which represents Ex-Im Bank’s first satellite transaction with Viet Nam, supported approximately 525 full-time equivalent American jobs, according to Lockheed Martin estimates, and financed export sales totalling $215 million, the bank said in a statement on its website.
"These opportunities promote economic growth in both countries, which in turn supports American jobs in vital US industries. The satellite transaction in particular reflects the unsurpassed quality of American technology and the demand for it abroad," Hochberg added.
The loan is for the export of a VINASAT-2, a Lockheed Martin telecommunications satellite.
The Viet Nam Post and Telecommunications Group (VNPT), a state-owned enterprise based in Ha Noi and acting on behalf of the Vietnamese Government in the transaction, hopes to satisfy the growing demand of the emerging telecommunications and television markets in the region.
"By providing financing for the Viet Nam Post and Telecommunications Group, this Ex-Im Bank loan supports US manufactured satellites and US jobs," said Linda Reiners, Lockheed Martin Space Systems Commercial Ventures vice-president.
"We congratulate our long-term customer VNPT, with whom we have now partnered in the manufacturing of two satellites."
VINASAT-2 is a geosynchronous satellite that was launched on May 15 and recently completed a series of in-orbit testing. Equipped with a payload of 24 active Ku-band transponders, the satellite provides coverage to Viet Nam, Cambodia, Laos, and Thailand.
BNP Paribas will serve as the documentation agent and letter-of-credit bank.
As of the end of FY 2011, Ex-Im Bank’s credit exposure in Viet Nam accounted for $185 million of the bank’s portfolio. In FY 2012, Ex-Im Bank authorised approximately $1.4 billion to support US satellite exports, exceeding its financing for the industry in FY 2011.
Ex-Im Bank is an independent federal agency that helps create and maintain US jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years, Ex-Im Bank has earned $1.9 billion for US taxpayers above the cost of operations.
The bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance, and financing to help foreign buyers purchase US goods and services.
Ex-Im Bank approved $32.7 billion in total authorisations in FY 2011 – a record for the bank.
