The U.S. Export-Import Bank has backed two small businesses employing 165 workers in Wyoming and Texas to export about $7 million worth of nitrogen pumps to an energy company in Singapore.
Payment was secured for the exporters by medium-term export financing extended by Wells Fargo and guaranteed by Ex-Im Bank. The transaction counts as a first use by Wells Fargo in its capacity as a Medium Term Delegated Authority lender under the MTDA program underwritten by Ex-Im Bank. The MTDA program offers exporters quick access to buyer financing from a network of lenders who have authority to write loans that will be guaranteed by the Ex-Im Bank.
"By our delegating lending authority to Wells Fargo, we shorten the process for obtaining guaranteed loans for exports that sustain U.S. jobs,” said Ex-Im Bank Chairman and President Fred P. Hochberg in a statement.
The suppliers to the contract are Compression Leasing Services, located in Casper, Wyo., and Generon IGS, based in Houston. Petroleum and geothermal drilling projects require pipe pressure boosters and an on-site source of nearly pure nitrogen.
"This Medium Term Delegated Authority transaction is a first for Wells Fargo, and we look forward to expanding our participation,” said Jeramie Maxwell, Wells Fargo's vice president for structured trade finance.