EX-IM BANK APPROVES LOAN GUARANTEE TO SUPPORT CNH's $11 MILLION SALE OF TRACTORS TO RUSSIA
RACINE, WI - CNH Global (formed from the merger of Case Corp. and New Holland), Lake Forest, IL, is exporting $11 million of agricultural harvesting equipment to Russia's Samara Oblast Administration, backed by a $10 million loan guarantee from the Export-Import Bank of the United States (Ex-Im Bank).
Other suppliers participating in the export sale include Consolidated Diesel Co., Whitakers, NC; May-Wes Manufacturing Co., Hutchinson, MN; and Northwestern Plastic Ltd. Industrial Service Co., Burlington, IA. Samara Oblast, which is similar to a province or state, is located near Russia's border with Kazakhstan.
This transaction is the first tractor and combine project financed by Ex-Im Bank in the Russian Federation, said Dan Renberg, a member of the Board of Directors of the Export-Import Bank. It is a true success story resulting from a fruitful partnership between the U.S. government and the private sector to support U.S. exports and jobs, continued Renberg, who accompanied U.S. Commerce Secretary Donald Evans at a town hall meeting and plant tour of CNH's Racine facility to announce the export sale.
The Samara Oblast project is being supported under Ex-Im Bank's sub-sovereign risk program announced in August 2000. Ex-Im Bank is the only export credit agency to accept such risk. Under this program, Ex-Im Bank will accept the credit of qualifying states, provinces and cities in emerging markets worldwide for purchase of U.S. equipment and services to address vital infrastructure and public sector needs.
Samara Oblast is the second regional entity to benefit from the program. Recently the city of St. Petersburg, Russia, also used the program to buy energy efficient lighting and fixtures for the city's high schools from a small Buffalo, NY-based company. Samara Oblast is the primary source of repayment on the export sale. Societe Generale, New York, NY, is the guaranteed lender.
Ex-Im Bank (www.exim.gov) is an independent federal government agency that helps finance the sale of U.S. exports, primarily to emerging markets, by providing loans, guarantees and export credit insurance. In fiscal year 2001, Ex-Im Bank authorized financing to support approximately $184 million of U.S. exports to Russia and $12.5 billion of U.S. exports worldwide.
CNH is the number one manufacturer of agricultural tractors and combines in the world. Based in the United States, CNH's network of dealers and distributors operates in over 160 countries. CNH agricultural products are sold under the Case IH, New Holland and Steyr brands.