Program will facilitate purchase of outstanding accounts receivable held by company’s small to mid sized suppliers
The Export-Import Bank of the United States (Ex-Im Bank) has approved a 90 percent guarantee to support up to $100 million of liquidity from Citibank N.A. (Citi) to small and medium-sized suppliers of CNH America LLC, a subsidiary of CNH Global NV (CNH), in Burr Ridge, Ill.
CNH operates a tractor assembly and transmission manufacturing facility in Racine.
Ex-Im Bank’s Supply-Chain Finance Guarantee Program will provide competitively priced working capital finance to suppliers of U.S. exporters, particularly small and medium-sized enterprises.
The transaction enables Citi to purchase accounts receivable owned by U.S. suppliers and due from CNH. These accounts receivable are related to purchases of goods and services by CNH for its export-related production.
“Our supply-chain finance guarantee is an innovative product that provides liquidity and strengthens the U.S. export supply chain to help create and maintain jobs, especially for small-business suppliers. We’re pleased to approve the first transaction under this program supporting U.S. suppliers of CNH,” Ex-Im Bank Chairman and President Fred P. Hochberg said.
“Ex-Im Bank’s guarantee will provide CNH’s suppliers in the United States with the opportunity for increased cash flow to ensure their ongoing growth and financial health,” said CNH President and CEO Harold Boyanovsky.