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Electro-Motive Division receives Ex-Im Bank loan to support sale of locomotive upgrade kits in Turkey


General Motors’ Electro-Motive Division (EMD) recently obtained an $86.8 million loan guarantee from Export-Import Bank of the United States (Ex-Im Bank) to help the company sell locomotive upgrade kits and related parts to the Turkish State Railways.

"This transaction … continues Ex-Im Bank’s recent progress in expanding rail exports," said Bank Chairman Philip Merrill in a prepared statement. "Turkey will be able to modernize its fleet of locomotives thanks to an export that will support U.S. production and jobs."

About 15 percent of the contract price involves components produced at EMD’s Ontario facility, so Ex-Im Bank will have to obtain a counter guarantee from Export Development Canada — the Canadian export credit agency — for part of the contract. Houston’s Toronto-Dominion Bank will be the guaranteed lender.

Ex-Im Bank helps finance the sale of U.S. exports, primarily to emerging markets, by providing companies with loan guarantees, export credit insurance and direct loans.

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More News from 9/21/2004