EXIM Creates Short-Term Financing Facility To Support Multiple Exports of Honda Aircraft Company's HondaJet
Washington, D.C. - The Export-Import Bank of the United States (EXIM) has launched an innovative financing facility to support multiple exports of U.S.-made HondaJet business aircraft that will support manufacturing jobs at Honda Aircraft Company in Greensboro, North Carolina.
Under the $5 million, short-term revolving facility, EXIM is serving as the guarantor of "floor planning" credit being extended by Apple Bank for Savings in New York. During a one-year availability period, the financing will support the exports of several HondaJet HA-420 aircraft to HondaJet's exclusive distributor in Mexico, Grupo Avemex S.A. de C.V. The transaction was arranged by AirFinance, an EXIM-qualified advisor for business aircraft and helicopters. The first HondaJet to be financed under the facility was delivered in late December.
"This transaction represents a creative new way to finance exports of American-made business aircraft to international customers. The EXIM-guaranteed facility fills an export-financing gap and supports American jobs, not only at Honda Aircraft Company's plant in North Carolina but also in the company's U.S. supply chain. This is a great example of public- and private-sector collaboration in support of U.S. manufacturing jobs in a very competitive industry," said Ambassador Jeffrey D. Gerrish, EXIM's acting president and chairman of the board of directors.
Honda Aircraft Company President and CEO Michimasa Fujino said, "We are appreciative of EXIM's support of the HondaJet and U.S. manufacturing . We are confident this collaboration will contribute to the success of the HondaJet internationally and will strengthen Honda Aircraft Company's manufacturing jobs in the United States."
Under the Qualified Advisors Program, initiated with AirFinance in 2012, EXIM leverages private-sector expertise by allowing qualified industry experts to assess credit risks and expedite EXIM-supported foreign-buyer financing for business aircraft and helicopters. The collaboration with industry experts also facilitates consideration of innovative approaches to support these exports such as the "floor planning" included in this transaction.
AirFinance is a global company focused on the financing of exports of general aviation aircraft. It is managed by a team of aviation professionals with extensive industry experience, including aircraft finance, leasing, credit analysis, structuring of cross border transactions, legal and domicile expertise, and technical knowledge of all aspects of aircraft asset management.
Founded in 2006 with its headquarters located in North Carolina, Honda Aircraft Company is a wholly owned subsidiary of American Honda Motor Co., Inc. The HondaJet is manufactured in the company's Greensboro facility, which has about 1,500 employees. Since 2015, Honda Aircraft Company has delivered more than 100 HondaJets to customers in the United States and abroad.
Grupo Avemex provides maintenance, chartering, and other services and has more than 40 years of operations as a dealer in Mexico for U.S.-manufactured business aircraft.
ABOUT EXIM BANK:
EXIM Bank is an independent federal agency that provides competitive and necessary export credit to overseas purchasers of U.S. exports to promote and support American jobs. A robust and fully functioning EXIM Bank can assist the United States in leveling the global playing field for U.S. exporters when they compete against foreign companies that receive the support of their national export credit agencies. EXIM also contributes to U.S. economic growth and the support of more than a million jobs through the support of thousands of small and medium-sized enterprises (SMEs) around the country. Since 2000, EXIM Bank has provided $14.8 billion to the U.S. Treasury after paying for all of its administrative and program expenses.