$4.7 Billion Mozambique Loan Resumed

The Export-Import Bank of the United States (EXIM) Board of Directors has unanimously approved a second amendment to a direct loan of up to $4.7 billion to support the export of U.S. equipment and services for an integrated liquefied natural gas (LNG) project in Mozambique.

Originally authorized in 2019, the transaction had been delayed for four years due to insurrection and now moves forward with no material changes.

Located on the Afungi Peninsula in northern Mozambique, the project includes the engineering, procurement, and construction of onshore LNG facilities and offshore infrastructure.

The deal is expected to "support" approximately 16,400 U.S. jobs at more than 68 companies across 14 states and the District of Columbia, with additional employment anticipated as follow-on effects ripple through the U.S. supply chain.  

Acting President and Chairman Jim Cruse stated, “This amendment fulfills a long-standing commitment and underscores EXIM’s role in supporting U.S. export competitiveness.”

The transaction, the largest in EXIM’s 91-year history, is anticipated to generate $600 million in interest and fees for the U.S. Treasury. Acting Vice Chairman Jim Burrows emphasized the deal’s strategic importance, noting that, absent EXIM financing, the project could have been awarded to Chinese or Russian firms. The financing is part of EXIM’s China and Transformational Exports Program (CTEP), designed to counter foreign competition in key sectors.

The amendment responds to a force majeure declared by the project operator in April 2021 due to regional security conditions. Following a comprehensive review, EXIM determined that appropriate security measures are now in place to proceed with construction.   

Executives from leading U.S. firms—including Baker Hughes, Honeywell, TechnipFMC, McDermott, and others—had urged EXIM and Congress to resume the project, warning that continued delays would jeopardize U.S. participation and allow geopolitical rivals to gain influence. 

The amended loan does not require further congressional notification due to the absence of material changes. EXIM affirmed that its statutory obligations—including economic impact analysis and sector neutrality—remain intact.

Domestic Funding Boosted

The Board also voted to streamline EXIM’s “Make More in America” (MMIA) initiative. Transactions under $25 million may now be approved by designated senior officials, following standard due diligence and risk analysis. The change aims to reduce bureaucratic delays and improve processing efficiency.

EXIM has obligated $34 billion of its $135 billion congressional lending authority as of January 2025, leaving approximately $101 billion available for future transactions.