The Export-Import Bank of the US (Ex-Im Bank) has authorized $1.5 billion of export financing in a pair of transactions to support the export of US goods and services to Petroleos Mexicanos (Pemex), Mexico's national oil and gas company.
For the second time, Pemex will issue Ex-Im Bank-guaranteed bonds in the capital markets to fund the transactions. In the event the funding cost is prohibitive, Pemex may exercise an option to seek Ex-Im Bank direct loans priced at commercial interest reference rates.
Ex-Im Bank's financing will support approximately 6,800 US jobs spread across about 10 states, according to bank estimates derived from Departments of Commerce and Labor data and methodology. The procurement includes oil and gas field drilling services, drilling platforms, equipment rentals, pumps, well-completion services, associated spare parts and chemicals, geophysical services and safety equipment.
"These two transactions will increase the flow of American exports to one of our neighbors and in the process support large- and small-business jobs across America," said Ex-Im Bank Chairman and President Fred P. Hochberg. "It is clear that the 'Made in America' brand is valued now more than ever.”
Detcon Inc., a small-business that will benefit from the transaction, designs and manufactures a wide range of industrial grade fixed gas detectors, control systems, pipeline analyzers, and wireless technology. The company, which is headquartered in The Woodlands, Texas, employs about 90 people.
"Detcon is proud of its association with Pemex," said Adam Markin, Detcon's CEO. "Ex-Im Bank's support of Pemex in this transaction is a large help to smaller U.S.-based companies like Detcon and to their jobs."
Since 1998, Ex-Im Bank has approved approximately $13.5 billion in financing to support Pemex's activities.