The Export-Import Bank of the United States (EXIM) Board of Directors yesterday approved transactions for a total of more than $1.4 billion to support the export of aircraft and spare propulsion equipment to Turkish Airlines and to provide a subsidized credit line for Swiss commodity trading giant Trafigura.
The aviation transactions, which amounted to slightly more than $1 billion, will support the export of Boeing aircraft with expected deliveries beginning in late 2025 and early 2026. The spare propulsion equipment will be exported by GE Aircraft Engines and is expected to be delivered in 2026. Exim states the Turkish Airlines transactions are expected to support an estimated 4,900 jobs across the United States.
The Board also renewed Financial Institution Buyer Credit Insurance (FIBC) policies for two European banks to guarantee a revolving line of credit to a Swiss commodity trading house to buy US Liquid Natural Gas.
The newly renewed FIBC policies will allow Trafigura Pte. to Geneva and Singapore based Trafigura to broker natural gas purchases from the US “primarily to European Buyers,” according to EXIM statements.
Each policy is for $200 million, with a 90 percent guarantee, for a taxpayer exposure of $360 million. The subsidies to Trafigura’s bankers, Citibank and Credit Agricole “could support approximately 9,800 U.S. jobs," according to the most recent EXIM statement, down from "could support over 12,000 U.S. jobs,” as announced at the initiation of the guarantee. [11242].
Trafigura has signed a similar credit facility with the Saudi Exim Bank to trade non-oil commodities produced in Saudi Arabia. The company has interests in US LNG exports. It has a 15-year offtake agreement with Cheniere for 1 million mt/year of LNG, which became effective in 2019.
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