Amaero International Limited (ASX:3DA) has announced a significant financial milestone, securing a US$23.5 million loan from the Export-Import Bank of the United States (EXIM).
The loan, equivalent to $37.8 million, was unanimously approved by EXIM’s bipartisan Board of Directors and will be provided to Amaero’s wholly-owned U.S. subsidiary, Amaero Advanced Materials & Manufacturing Inc.
This financing is part of EXIM’s Make More in America initiative (MMIA), designed to address long-term weaknesses in U.S. supply chains and support domestic manufacturing.
Amaero’s loan marks the 6th MMIA loan approved by EXIM and the first to support advanced materials and additive manufacturing.
Hank J. Holland, Amaero’s Chairman and CEO, highlighted the significance of this non-dilutive, government-funded support, stating that it “validates the alignment of Amaero’s strategy and capability with the United States’ priority policy initiatives”.
The company plans to invest approximately US$50 million in capital equipment and facility improvements, potentially creating an estimated 150 skilled, high-paying U.S. jobs.
The loan will primarily finance capital equipment for Amaero’s manufacturing and corporate headquarters in McDonald, Tennessee.
It features a 75 per cent loan-to-cost ratio on capital equipment, with draws expected over five quarters beginning in the fourth quarter of FY2025.
The loan terms include a 12-month interest-only period followed by seven years of fully amortising principal and interest payments, with an estimated cost of capital at 6.95 per cent per annum.
EXIM Bank President and Board Chair Reta Jo Lewis highlighted the loan’s role in supporting domestic manufacturing and job creation, stating it “underscores EXIM’s commitment to re-shoring and re-building more resilient and more scalable domestic manufacturing and supply chain capabilities.”
With this financing, Amaero is positioned to become the largest U.S. domestic manufacturer of C103, refractory, and titanium alloy powders, crucial for advanced manufacturing in the space and aerospace sectors.
This development aligns with U.S. efforts to enhance manufacturing resilience and supply chain capabilities, addressing critical gaps in the domestic industrial base.
The loan approval follows an extensive due diligence process and is subject to final documentation, which is expected to be completed in the current quarter.
This financial boost is set to play a pivotal role in Amaero’s expansion plans and contribution to strengthening U.S. manufacturing capabilities.
