The Export-Import Bank of the US (Ex-Im Bank) has approved a $83.1m loan for the Iron Ore Company of Canada (IOC) to support the sale of six US-built locomotives, railroad cars and mining equipment.
According to IOC, it is second order backed by Ex-Im Bank financing and the locomotives, railroad cars and mining equipment will be used to expand its production in Labrador City, Newfoundland, Canada.
Ex-Im Bank chairman and president Fred Hochberg said: "As global infrastructure investment increases, high quality, American-made locomotives and equipment are in demand around the world."
"Ex-Im is committed to ensuring that the financing is in place to allow American companies to win a growing share of these sales," Hochberg said.
"These transactions bolster our manufacturing base, while creating, supporting and sustaining good jobs in communities across the US."
According to the company, the loan will support 500 US jobs across a range of businesses in six US states, including Arkansas, Illinois, Missouri, Tennessee, Virginia and Wisconsin.
The US companies involved in the IOC deal include Electro-Motive Diesel (EMD), American Rail Car Industries, Freightcar America, Harnischfeger, Komatsu America, and Caterpillar.
"These companies build products that are built to last and in the process they are building an American economy that is built to last - one that is driven by manufacturing, exports and the most talented and productive workers in the world," Hochberg said.
Comerica Bank will act as the guaranteed lender of the IOC transaction.
Last year, Ex-Im Bank had approved locomotive finance of more than $550m to support the sale of US-made locomotives to inaccessible markets, including Kazakhstan and South Africa.