Ex-Im Approves $461 million to Finance Export of U.S. Satellites to
Hong Kong
WASHINGTON, Nov. 19, 2012 /PRNewswire-USNewswire/ -- In
a decision that will support thousands of high-tech jobs in the
U.S., the board of the Export-Import Bank of the United States (Ex-Im Bank) has authorized
two transactions aggregating $461
million to underwrite the export of American-made satellites
to Hong Kong.
(Logo: http://photos.prnewswire.com/prnh/20110414/MM83673LOGO)
The pair of transactions will support approximately 3,700 U.S.
jobs, according to Bank estimates derived from Departments of
Commerce and Labor data and methodology.
"We are excited to play such a key role in two dynamic
transactions that will support several thousand high-paying U.S.
jobs in the satellite and aeronautics industries," said Ex-Im Bank
Chairman and President Fred P.
Hochberg. "These products reveal the technological ingenuity
and innovation of American companies and will benefit millions of
people the world over as we orient ourselves more and more to the
future."
Asia Broadcast Satellite (ABS) of Hong
Kong will deploy the satellites to upgrade and expand its
fleet, which offers coverage to 80 percent of the world's
population and targets emerging markets in Africa, Asia,
the Middle East, and Russia.
"We are absolutely delighted with the support of Ex-Im Bank to
provide us financing for our upcoming satellite and launch
platforms. In ABS-2, Space Systems/Loral provides us with one
of the largest satellites ever to be launched over Asia. Separately, the combination of Boeing
702SP satellites and the Falcon-9 launch vehicles will
revolutionize the Fixed Satellite industry with the most cost
effective delivery of satellites into orbit," said Tom Choi, chief executive officer of ABS. "With
these satellites, ABS will extend the reach of affordable and
reliable communications and broadcast services to the emerging
markets of the world. We are proud to be partnered with such
innovative companies and we are extremely thankful for Ex-Im's
financing support."
In the first transaction, the Bank authorized a $171.29 million direct loan to ABS to finance the
purchase of a FS1300, C/Ka/Ku-band geostationary satellite from
Space Systems/Loral Inc. (SS/L) and insurance from Aon. The
satellite is scheduled to launch in 2013.
SS/L, a Palo Alto, Calif.-based
provider of satellites and space systems, has manufactured more
than 250 satellites since 1960. The satellites have delivered an
excess of 1,900 years of on-orbit service.
"Export-Import Bank financing helps make U.S. manufacturers more
competitive and keeps our space industry strong," said John Celli, president of Space
Systems/Loral. "Our work on the satellite for ABS keeps
hundreds of engineers, technicians and managers employed here in
Palo Alto and many hundreds more
at suppliers across the U.S."
Additionally, the Bank authorized a separate $289.71 million direct loan to ABS to facilitate
the purchase of two 702SP C- and Ku-band geostationary satellites
from Boeing Satellite Systems International (Boeing), insurance
from Aon, technical support, and the launch of both of the
satellites with Space Exploration Technologies (SpaceX) Falcon 9.
The transaction will finance the first two of Boeing's
all-electric-propulsion commercial satellites and the first Ex-Im
Bank-backed SpaceX launch. The two satellites are planned to launch
in 2015 from Cape Canaveral,
Fla.
"The Bank's support of this important satellite operator, one of
two launch customers, finds it again at the forefront of helping
fulfill a global opportunity with an advanced-technology,
American-made product," said Craig
Cooning, chief executive officer of Boeing Satellite Systems
International. "Our all-electric propulsion means lighter
launch weight, which translates into more payload capability at a
lower cost in orbit. It ultimately means we can offer customers
more and capture sales that will support hundreds of high-tech
American jobs."
Founded in 2002 and headquartered in Hawthorne, Calif., SpaceX designs,
manufactures and launches rockets and spacecraft. It is the first
private company to build, launch, and dock spacecraft at the
International Space Station, a mission previously accomplished only
by government space entities.
"Ex-Im Bank's financing of the ABS mission on a Falcon 9 launch
vehicle marks the first SpaceX international launch deal to receive
Ex-Im backing, and we look forward to many more to come," said
Gwynne Shotwell, SpaceX president.
"SpaceX is rapidly winning back market share in a commercial field
once dominated by the U.S. The support of Ex-Im is great for our
customers, our jobs, and our country."
HSBC Hong Kong and New York Project & Export Finance teams
acted as lead financial advisor to ABS throughout the Ex-Im Bank
application and due diligence processes.
In FY 2012, Ex-Im Bank authorized approximately $1.4 billion in satellite transactions.
ABOUT EX-IM BANK:
Ex-Im Bank is an independent
federal agency that helps create and maintain U.S. jobs by filling
gaps in private export financing at no cost to American taxpayers.
In the past five years (from Fiscal Year 2008), Ex-Im Bank has
earned for U.S. taxpayers nearly $1.6
billion 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 U.S. goods and services.
Ex-Im Bank approved $35.8 billion in total authorizations in FY 2012
– an all-time Ex-Im record. This total includes more than
$6.1 billion directly supporting
small-business export sales – also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an
estimated $50 billion in U.S. export
sales and approximately 255,000 American jobs in communities across
the country. For more information, visit www.exim.gov.
SOURCE Export-Import Bank of the
United States