US ExImBank to Back AugustaWestland Helicopter Deal Serving Colombian Offshore Petroleum Sector

The Export-Import Bank of the United States (Ex-Im Bank) has approved a $22.4 million dollar loan guarantee for Apple Bank for Savings of New York to finance the export of U.S.-made AgustaWestland AW139 helicopters to borrower North Pole Investments in Panama for use in Colombia’s offshore oil and gas industry. According to Ex-Im Bank estimates derived from US Commerce and US Labor department data, the bank’s financing is expected to support an estimated 200 jobs at AgustaWestland’s manufacturing and operations facility in Philadelphia, Pennsylvania, and through the company’s U.S. supply chain.

Ex-Im Bank Chairman and President Fred P. Hochberg made the announcement last week while participating as a member of the U.S. government delegation to the Summit of the Americas conference being held in Panama City. “We are pleased to finance the exports of these quality, American-made helicopters because of the jobs in Philadelphia that will be sustained as a result,” said Chairman Hochberg. “This transaction will empower AgustaWestland to continue to grow in Latin America while maintaining good-paying aerospace jobs here at home.”

Ex-Im Bank plans to co-finance this asset-backed transaction with Italy’s export-credit agency, Servizi Assicurativi del Commercio Estero, S.p.A. (SACE), which is anticipated to provide a guarantee for a portion of the financing covering foreign content. The majority of the export is the U.S. content, which consists of manufacturing activities, assembly, customization, avionics and instrumentation. Augusta Westland is owned by Italy’s Finmeccanica.

Photo courtesy AgustaWestland

North Pole Investments is an aviation leasing firm headquartered in Panama City. The company leases aircraft to its primary customer Helistar S.A.S., a civil charter services operator based in Colombia. The AW139 helicopters being financed will be leased to Helistar and will be deployed for offshore oil and gas crew transport in the Colombian Caribbean continental shelf.

AgustaWestland’s manufacturing and operations facility in Philadelphia employs nearly 600 U.S. employees. In February of 2008, the company opened a second AW139 assembly line in Philadelphia to meet the growing demand for its helicopters, especially throughout North and South America, and the Caribbean.

The transaction is Ex-Im Bank’s fourth financing of exports of U.S.-made AgustaWestland helicopters to Latin America. In August 2009, the Bank assisted in financing the export of AW139 helicopters to the government of Trinidad and Tobago for use in search and rescue operations. In December 2012 and in July 2013, the bank approved loan guarantees financing AW139 helicopters for export to Omni Taxi Aéreo to meet its transportation contracts with the oil and gas industry in Brasil.