# Presentation: 327591

## Interest Rate 

**Decrease**
**Makes Export **
**Financing**
**More Attractive**

## WHAT IS EXPORT FINANCE?

_**WHAT IS EXPORT FINANCE?**_
**M&T Bank extends term financing **
**(typically 5 year terms) to buyers of goods and services supplied from the United States.   **
**We provide this financing under **
**the insurance and guarantee **
**programs of the U.S. Ex-Im Bank.**

## Some Foreign Buyers Receiving Export Finance

- 	**Manufacturing. **
**	****Construction.**
**	****Hospitals.**
**	****Petrochemicals.**
**	****Agro-Industry.**
**	****Textiles.**
**	****Restaurant Franchises.**
**	****Air Transport.**
**	****Publishing and Printing. **

_**Some Foreign Buyers Receiving Export Finance**_

## How We Fund Loans

_**We Can Fund in One of the Following Ways**_**:**
**Reimburse U.S. Exporter after Shipment.**
**Reimburse Borrower after Shipment. **
**Issue L/C to U.S. Exporter, who Draws upon****	****L/C after Shipment. **
**Pay Exporter as Borrower Certifies             ****	****Exporter’s Satisfaction of Contractual ****	****Milestones. **

_**How We Fund Loans**_

## Key Financing Benefits to Foreign Buyer

**Foreign Buyer Can Finance:**
**Imports from the U.S.**
**Up to 85% of Value of U.S. Purchases. **
**Packages of Small Items, as well as Large.**
**U.S. Portion of Buyer’s Capital Investments.**
**Recent Past U.S. Procurements.**
**U.S. Services as well as Goods.**

_**Key Financing Benefits to Foreign Buyer**_

## Repayment Term to Foreign Buyer

**Term is typically **_**10 Semi-Annual Payments,**_**  beginning Six Months after **_**Shipment or Installation.**_
**Longer Terms available for Transactions > $15 Million,****	****and for Renewable Energy, Environmental, ****	****Medical, and Transportation Security.**

_**Repayment Term to Foreign Buyer**_

## Interest Rates

_**Six-Month US$ LIBOR plus a Margin**_
**Margin Depends on Transaction Characteristics:**
**   ****Loan Size, Borrower Strength, Market Conditions.**
**   ****Margin ranges from 0.50% to 1.50%.**
**Interest is Paid in Arrears on Repayment Dates.**
_**Fixed Rate US$ Financing Also Available**_

_**Interest Rates**_

## Effect of Interest Rate Decrease

**(Assume:  $1 Million Loan Repaid over 5 Years.)**
_**JANUARY 2007:**_**  **
**LIBOR (5.4%)+1% = **_**6.4%.**_
**  ****$192,000 Total Interest Paid.**
_**MARCH 2008:**_**  **
**   ****LIBOR (2.7%)+1% = **_**3.7%**_
**  ****$110,000 Total Interest Paid.**
_**INTEREST SAVINGS: $81,000 (42% Cheaper!)**_

_**Effect of Interest Rate Decrease**_

## Fees

**	****U.S. Ex-Im Exposure Fees (Depends on Country).**
**	****Ex-Im Fee is Rolled into Financing, paid by Buyer.**
**M&T Bank Facility Fee (1-1.5% Up-Front):  Paid by Buyer at Loan Closing.**
**For Loans > $10 million, Ex-Im Commitment Fee of 1/8% on Undisbursed Balances.**

_**Fees**_

## Who is M&T Bank?

_**Who is M&T Bank?**_
** **
**  **•   “_M_anufacturers & _T_raders” Bank
-   •   150 Years Old
-   •   $57 Billion in Total Assets
-   •   670 Branches on U.S. East Coast
-   •   Supervised by U.S. Federal Reserve
-   •   Listed on New York Stock Exchange
-   •   One of the “S&P 500”.
-   •   One of the “Fortune 500”.
-   •   Allied Irish Bank is largest shareholder
-   •   Berkshire Hathaway (Warren Buffett)
-             maintains a significant shareholding

## To Discuss Transactions, Please Contact:

_**To Discuss Transactions, Please Contact**_:
**Clement Miller****	****	**_[cmiller4@mtb.com](mailto:cmiller4@mtb.com)_
**Michael Cusack****	****	**_[mcusack@mtb.com](mailto:mcusack@mtb.com)_
**Benjamin Akuete****	****	**_[bakuete@mtb.com](mailto:bakuete@mtb.com)_
**Jacqueline Tanenbaum****	**_[jtanenbaum@mtb.com](mailto:jtanenbaum@mtb.com)_
**www.mtb.com/international**