Private Export Funding Corporation
Private Export Funding Corporation (PEFCO)
Although a separate organization, the Private Export Funding Corporation (PEFCO) is closely related to Eximbank and is mentioned here to round out the Eximbank picture and to cover all the facilities. PEFCO serves as a supplemental source of long-term financing for foreign buyers of American exports. It also has a new Note Purchase Facility to assure liquidity for Eximbank guaranteed medium-term promissory notes. It is a private corporation owned by a number of banks and 7 industrial corporations. PEFCO obtains the money it lends by selling debt obligations that are guaranteed by Eximbank. PEFCO supplements fixed-rate financing funds for a project only when its participation exceeds $ 1 million and the term exceeds 5 years.
Typically PEFCO would be involved in combination with private banks and Eximbank, accepting middle maturities longer than the banks and shorter than Eximbank. Because it is a private organization and fairly unstructured, it can help develop unique packages involving special interest rate pricing techniques that would not be possible for Eximbank, and would be undesirable to the private banks. Its role of facilitator is now enhanced by virtue of the Note Purchase Facility. Eximbank considers this a key feature in its efforts to make the Eximbank programs as appealing as possible to the banking community and to encourage bank participation in trade finance to the benefit of our exporters' competitiveness.
Relative
role of facilitator industrial corporations bank participation private banks supplemental source american exports private corporation trade finance pefco private organization debt obligations promissory notes maturities eximbank liquidity competitiveness fixed rate virtue special interest interest rate
Although a separate organization, the Private Export Funding Corporation (PEFCO) is closely related to Eximbank and is mentioned here to round out the Eximbank picture and to cover all the facilities. PEFCO serves as a supplemental source of long-term financing for foreign buyers of American exports. It also has a new Note Purchase Facility to assure liquidity for Eximbank guaranteed medium-term promissory notes. It is a private corporation owned by a number of banks and 7 industrial corporations. PEFCO obtains the money it lends by selling debt obligations that are guaranteed by Eximbank. PEFCO supplements fixed-rate financing funds for a project only when its participation exceeds $ 1 million and the term exceeds 5 years.
Typically PEFCO would be involved in combination with private banks and Eximbank, accepting middle maturities longer than the banks and shorter than Eximbank. Because it is a private organization and fairly unstructured, it can help develop unique packages involving special interest rate pricing techniques that would not be possible for Eximbank, and would be undesirable to the private banks. Its role of facilitator is now enhanced by virtue of the Note Purchase Facility. Eximbank considers this a key feature in its efforts to make the Eximbank programs as appealing as possible to the banking community and to encourage bank participation in trade finance to the benefit of our exporters' competitiveness.
Relative
role of facilitator industrial corporations bank participation private banks supplemental source american exports private corporation trade finance pefco private organization debt obligations promissory notes maturities eximbank liquidity competitiveness fixed rate virtue special interest interest rate
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