The Board of Directors of the Export-Import Bank of the United States has voted to grant preliminary approval for a USD 2.84 billion direct loan/loan guarantee to Colombia’s Refineria de Cartagena S.A. (Reficar). When approved, the financing will support the purchases of equipment and services from more than 150 large and small U.S. engineering, design, equipment supply, contracting and process license firms, including Chicago Bridge & Iron, Foster Wheeler, Exxon/Mobil and UOP. This is part of a USD 5.18 billion refinery and upgrade project in Cartagena, Colombia supplying petroleum products to the domestic and export markets. Approximately 4% of the transaction will directly benefit small businesses. Colombia is now second to Mexico as Ex-Im Bank’s largest market in Latin America. At the end of fiscal year 2008 the Bank’s exposure in Colombia totaled USD 127.5 million; if the Reficar proposal receives final approval this will increase the Bank’s exposure to approximately USD 3.8 billion. The transaction is subject to Congressional notification, with a final vote anticipated approximately 35 days following the expiration of the notification period. If approved it will be the second largest transaction ever approved by the Bank.
