Ex-Im Bank gives initial approval for $2.8 billion in financing for Colombian refinery
The Board of Directors of the Export-Import Bank of the US today voted to grant preliminary approval for a $2.84 billion direct loan/loan guarantee to Colombia’s Refinería de Cartagena S.A. (Reficar). The financing, when finally approved, will support the purchases of equipment and services from over 150 large and small U.S. engineering/design, equipment supply, contracting and process license firms, including Chicago Bridge & Iron, Foster Wheeler, ExxonMobil and UOP.
This is part of a $5.18 billion refinery and upgrade project in Cartagena, Colombia, supplying petroleum products to the domestic and export markets. About four percent of the transaction will directly benefit small businesses. The transaction will help create or sustain over 15,000 American jobs for a total of four years.
“Colombia is one of the nine countries in the world that Ex-Im Bank has identified as having the greatest potential for US exporters and their workers,” said Fred P. Hochberg, chairman and president of the bank. “Just last February and December the Bank approved nearly $880 million in export financing to help finance the sale of goods and services from various US exporters to Ecopetrol S.A., Colombia's national oil company. The export sales to Ecopetrol alone support an estimated 6,700 American jobs.”
Colombia is now second to Mexico as Ex-Im Bank’s largest market in Latin America. At the end of fiscal year 2008 the bank’s exposure in Colombia totaled $127.5 million. If the Reficar transaction receives final approval the bank’s exposure there will increase to almost $3.8 billion.
The Reficar transaction is subject to Congressional notification, with a final vote anticipated approximately 35 days following the expiration of the notification period. If it receives final board approval it would be the second largest transaction ever approved by the bank.
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