U.S. Small Business Sells Oil Storage and Pipeline Equipment to Ghana Backed by Ex-Im Bank $109.5 Million Guarantee
WASHINGTON, D.C. - American Tank & Vessel Inc. (AT&V), a small business with offices in Houston, Tex., and headquartered in Mobile, Ala., will export oil storage tanks and pipelines to the Republic of Ghana backed by a $109.5 million loan guarantee from the Export-Import Bank of the United States (Ex-Im Bank).
The export sale to Ghana's Bulk Oil Storage and Transportation Company (BOST) will create and sustain jobs at AT&V and its U.S. suppliers from Oregon to Alabama, while benefiting Ghana's economy by increasing the country's oil storage capacity and improving delivery of petroleum-related products into rural areas.
This transaction reflects two key Ex-Im Bank priorities - expanding support for U.S. small business exports and for U.S. exports to sub-Saharan Africa, said Ex-Im Bank Chairman and President James H. Lambright. We look forward to supporting further projects in the growing Ghanaian market.
The project brings work to the U.S. in the form of engineering, fabrication and material procurement, as well as sustaining and promoting job growth at AT&V and our suppliers, said AT&V Vice President W.T. Cutts. AT&V's employees are excited about working with BOST and their Ghanaian counterparts to continue to develop U.S. exports to the sub-Saharan market. AT&V is designated a small business by the U.S. Small Business Administration.
The Ex-Im Bank loan guarantee covers the $79.4 million export sale, as well as related local project costs in Ghana, capitalized interest during construction, and an exposure fee. The Ex-Im Bank-guaranteed lender on the transaction is Citibank N A, New York, N.Y. The credit will be secured by the full faith and credit of the government of Ghana.
The Ex-Im Bank financing will support the expansion of oil storage capability at the Mami Water Depot from 120,000 metric tons to 230,000 metric tons, and the construction of two 70-kilometer pipelines to transport petroleum into the interior areas of Ghana. Trinity International, Inc., Potomac, Md., arranged the transaction, introducing BOST, a Ghanaian government agency, to AT&V and Ex-Im Bank financing.
Ex-Im Bank, an independent federal government agency, this year marks its 72nd year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world. The Bank last year authorized over $12.1 billion in export financing, including more than $532 million in support of U.S. exports to sub-Saharan Africa, and $3.18 billion to back U.S. small business exports. Ex-Im Bank works with commercial lenders to help U.S. companies increase export sales and American jobs and minimize risk by accessing the Bank's financing and export credit insurance.