Amaero International Ltd (ASX:3DA) has secured a loan of US$22.8 million from the Export-Import Bank (EXIM), as part of the latter’s Make More in America (MMIA) initiative, which seeks to rectify problems in the country’s longer-term supply chains.

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The company – which produces materials such as C103, refractory alloy, and titanium powders for use in manufacturing components used within the defence, aviation, and space industries – first announced the loan in early January.

The credit agreement has now been executed, the company confirmed today.

Amaero told investors the loan – which has a fixed interest rate of 5.43% per annum – involved an amount lower than the originally announced US$23.5M due to EXIM’s reduction of capitalised fees which it had intended to charge.

Its total cost equals approximately 7.05% per annum over an eight-year term, making it a flexible funding source for the company.

Amaero chairman and CEO Hank J Holland said receiving the loan was an important step towards strengthening the company’s fiscal foundation into the near future.

“Fully funding our planned capital expenditures and expected operating losses through EBITDA breakeven is a very important milestone event,” he said.

“Non-dilutive, U.S. government-funded support is an important signal to the market that validates the alignment of Amaero’s strategy and capability with the United States’ priority policy initiatives.

“The direct loan of US$22.8 million from EXIM coupled with a series of equity capital raises since May 2022 that totalled approximately US$64.5 million have positioned Amaero with a strong balance sheet and with sufficient liquidity to fund planned capital expenditures and to fund operating losses through achieving expected EBITDA breakeven in FY2026.”

Amaero shares have moved up on the news and last traded at 30.5 cents – a rise of 1.67% since the market opened.

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