Jordan Times
Monday, October 25, 2004
XPress signs $54m loan
guarantee with US Export-Import Bank
By Rami Abdelrahman
AMMAN — XPress Telecommunications signed yesterday a $54 million loan guarantee
with the US-based Export-Import (EXIM) Bank to finance the construction of a
National Trunked Radio Dispatch Network in Jordan using Motorola's iDEN
technology.
Considered the first export credit agency project financing in the
telecommunications sector in Jordan, the EXIM Bank's 7-year $54 million project
finance facility has been arranged by Citigroup and funded by Govco, a
Citigroup-managed commercial paper funding vehicle.
According to XPress, the Export and Finance Bank (EFB)-Jordan is the lender for
the complimentary JD7.1 million commercial financing facility necessary to
finance its working capital requirements. The proceeds of the facility will go
to the procurement of telecommunications equipment from Motorola.
EXIM Bank Chairman Philip Merrill commented on the deal saying: “This
telecommunications network will bring economic and social benefits to the people
of Jordan, while supporting export-dependent jobs at a dozen US companies.”
EXIM Bank, the official US export credit agency, is in its 71st year of helping
finance the sale of US exports, primarily to emerging markets, by providing loan
guarantees, export credit insurance and direct loans. In fiscal year 2003, the
bank authorised financing to support $14.3 billion of US exports.