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ATRAFIN American Trade & Finance Company

ATRAFIN American Trade & Finance Company. Trade Finance for the Agriculture Sector. NAMPO Harvest Day 2011. About Atrafin.

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ATRAFIN American Trade & Finance Company

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  1. ATRAFINAmerican Trade & Finance Company Trade Finance for the Agriculture Sector NAMPO Harvest Day 2011

  2. About Atrafin American Trade & Finance Company (“ATRAFIN”) and its affiliates have been providing successful trade finance solutions for more than 20 years and have concluded hundreds of cross-border financings in emerging markets worldwide.

  3. About Atrafin ATRAFIN utilizes the programs of the Export-Import Bank of the United States (Ex-Im Bank) to help US exporters and their distributors increase exports by providing their emerging market buyers with competitive financing for their purchases of U.S. capital goods and services.

  4. Atrafin’s Focus • Master Guarantee Agreement with Ex-Im Bank. • Provides competitive financing to emerging market buyer of U.S. capital equipment. • ATRAFIN is a direct lender, not a broker or intermediary. • ATRAFIN supports both sides of the transaction: U.S. exporter and emerging market importer.

  5. Competitive Advantages • Experienced Team of International Lenders. • Experience working with emerging market buyers in agriculture sector. • Experience working withEx-Im Bank. • Geographic Coverage in key African Markets. • ATRAFIN simplifies the Ex-Im Bank financing process for the buyer and seller to accelerate the approval process.

  6. Equipment shipped to a third country • Atrafin can finance US equipment shipped to a third country based on an Ex-Im Bank determined acceptable external country credit risk. • The above is challenging for Local Banks because the financed asset will be located outside of the country (ex: in Africa) • Challenging for Local Banks at destination because company operations are located outside of the country. • This fills a key gap in commercial financing

  7. ATRAFIN Financing in the Agriculture Sector Term Loans for imports of U.S. capital equipment. Floor Plan Financing for dealers and distributors of U.S. capital equipment. Financing for imports of U.S. agricultural commodities, raw materials or other inventory items. 7

  8. Financing for Imports of U.S. Capital Equipment U.S. equipment and services are eligible. Financing for 85% of contract value. Loans in USD. Repayment terms of 3 to 5 years. Loans from $150,000 to $10 million. Competitive interest rates. 8

  9. Financing for Imports of U.S. Raw Materials U.S. agricultural commodities, raw materials and other inventory items are eligible. Short-term, USD lines of credit for purchases of U.S. products from U.S. suppliers. Repayment terms up to 365 days per advance. Competitive interest rates. 9

  10. Floor Plan Financing for Dealers & Distributors of U.S. Equipment Dealers & distributors can finance their purchases of US equipment on a short-term basis. Short-term obligation converts to a medium-term obligation to support resale to customers on credit terms. Enables dealers to offer financing terms of up three years to their customers. 10

  11. Relationship between the parties Agree on Finance Obtain Application Info Loan Docs Repayment ATRAFIN BORROWER BUYER Order Goods Pay 15% Ship Goods Obtain Guarantee Pay Exposure Fee Open LC Docs Pay 85% EXIM BANK USA EXPORTER

  12. The Process • 3 years of financials and related information (pro-forma) • Obtain letter from Guarantor bank agreeing to Guarantee transaction • Issue Proposal (Term Sheet) • Borrower Signs and pays deposit as sign of good faith • Underwriting questionnaires (background and financial) • References • Application to Ex-Im Bank

  13. The Process (continued) • Approval by Ex-Im Bank • Documentation (Credit Agreement/note and Funding) • LC to Exporter; Funding

  14. Sample Transactions Sugar Farm $323,000 Five-Year Loan for Import of Agricultural Equipment from the U.S. Zambia 14

  15. Sample Transactions Tomato Farm $875,000 Five-Year Loan for Import of Agricultural Equipment from the U.S. South Africa 15

  16. Sample Transactions Grain Grower & Processor $746,000 Five-Year Loan for Import of Grain Storage Equipment from the U.S. Latvia 16

  17. Sample Transactions Manufacturer of Fertilizers $1,000,000 Short-Term Line of Credit for Import of Agricultural Chemicals from the U.S. Brazil 17

  18. Sample Transactions Dealer-Distributor of Agricultural Equipment $3,653,000 Five-Year Loan for Import of Agricultural Equipment from the U.S. Israel 18

  19. Atrafin Contact Harry Kaplan Chief Executive Officer Atrafin LLC American Trade & Finance Company hkaplan@americantradefinance.com +27 11 885 1360

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