Ex-Im Approves $118 Million in Financing to
Vietnam for Export of Lockheed Martin Satellite
1 October 2012
The board of the Export-Import Bank of
the United States (Ex-Im Bank) voted to authorize a
$118 million direct loan to the
government of Vietnam for the
export of a Lockheed Martin Space Systems Company telecommunications
satellite and additional goods and services.
The loan, which represents Ex-Im Bank's first satellite
transaction with the government of Vietnam,
supported approximately 525 full-time equivalent American jobs,
according to Lockheed Martin estimates, and financed export sales
totalling $215 million.
"As one of our nine key markets,
Vietnam affords American companies unique export
opportunities," said Ex-Im Bank Chairman and President
Fred P. Hochberg. "These
opportunities promote economic growth in both countries, which in
turn supports American jobs in vital U.S. industries. The satellite
transaction in particular reflects the unsurpassed quality of
American technology and the demand for it abroad."
The Vietnam Post and Telecommunications Group (VNPT), a
state-owned enterprise headquartered in
Hanoi acting on behalf of the government of
Vietnam in the transaction, hopes
to satisfy the growing demand of telecommunications and television
markets emerging in the region.
"By providing financing for Vietnam Posts and Telecommunications
Group, this Ex-Im Bank loan supports U.S. manufactured satellites
and U.S. 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."
The satellite, VINASAT-2, is a geosynchronous satellite that was
launched 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
Vietnam,
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
Vietnam accounted for
$185 million of the Bank's portfolio.
In FY 2012, Ex-Im Bank authorized approximately
$1.4 billion to support U.S. satellite
exports, exceeding its financing for the industry in FY 2011.
Ex-Im Bank considered the
transaction only after receiving presidential approval to do so.
According to the Bank's Charter, the president must first determine
if an Ex-Im Bank loan of $50 million
or more to a Marxist-Leninist country is in the national interest
before the Bank's board can vote on the transaction.
