The Export-Import Bank of the United States has approved an US $14.4 million loan guarantee that will support the financing of $14 million in exports of solar-cell manufacturing tools and equipment from Applied Materials Inc. to Signet Solar LLC in Germany.

Ex-Im Bank is providing a five-year facility guaranteeing a limited-recourse loan denominated in euros to Signet Solar LLC from the Bank of America. Ex-Im Bank’s five-year loan guarantee is also supporting $5.2 million in local costs for installation and construction that were financed under the loan.

The Applied Materials exports were used to design and construct the Signet Solar Project, a manufacturing facility in Dresden using an Applied Materials SunFab line, that was completed in late 2008 and produces amorphous thin-film silicon PV modules. The PV modules are used in end applications by Signet Solar’s customers in Germany, Italy and Spain.

Limited-recourse project finance is an arrangement in which Ex-Im Bank assists in lending to newly created project companies and looks to the project’s future cash flows as the source of repayment instead of relying directly on foreign governments, financial institutions or established corporations.

By Vasil Sidorov on April 20, 2009 after RenewableEnergyWorld.com