The Export-Import Bank
The Export-Import Bank issued its first "mixed-credit" financing loan that secured a $21.2 million contract for Scientific Atlanta Inc., over competitive bids from France and Japan.
Scientific Atlanta, which is based in Atlanta, was contracted by the Office of Posts and Telecommunications in Gabon to install a network of television and telecommunications satellites in that African nation. This marks the first Ex-Im Bank mixed-credit package that has been converted to a loan.
Ex-Im Bank began offering mixed-credit financing in the fall after President Reagan called for the creation of a $300 million war chest and introduced trade measures to "combat unfair foreign mixed credits" and counter subsidized export financing by countries such as France and Japan. Under the President's direction, Ex-Im Bank undertook "an aggressive program targeted against countries hampering with international negotiations."
"Since October 1985, Ex-Im Bank has made 11 targeted mixed-credit offers totaling over $360 million," said John A. Bohn Jr., president and chairman of the bank. "Although we've received information that American companies have won, or are on the verge of winning, orders in four other mixed-credit cases, this is the first instance where the buyer has asked to convert our financing offer into a loan."
Mixed-credit packages are made up of a standard export loan and a grant/gift equivalent that makes up one-fourth of the total financing.
Scientific America was awarded a contract for the first phase of the project and stands a good chance of obtaining contract awards for 27 additional stations, the bank said. International Finance Corp.
The International Finance Corp. is raising $50 million through a private placement of seven-year bonds in the Eurodollar market. The Eurobonds carry a coupon rate of 7 5/8 percent and are being placed by Deutsche Bank Capital Markets Ltd. in London.
"This is IFC's fifth borrowing from the international market in the 1986 financial year," said Richard Frank, IFC's director of financial management.