Chapter 14: EVelution Energy Secures EXIM Bank Backing: $200M LOI with Unmatched Terms
Gil Michel-Garcia, EVP & General Counsel of EVelution Energy, reveals a major milestone in the financing of their Yuma County cobalt processing facility.
In Chapter 14, Gil Michel-Garcia and Michael Gibson discuss that the U.S. Export-Import Bank (EXIM) has issued a Letter of Intent for up to $200 million, covering 70% of construction costs. The terms are extraordinarily favorable—18-year financing at rates around 5-5.5%—demonstrating federal commitment to reshoring critical mineral supply chains and reducing reliance on China.
These financing terms are virtually unheard of in private markets. They provide EVelution Energy with the stability to build and operate the facility while keeping EB-5 capital requirements modest and well-secured.
For EB-5 investors, this means participating in a project with government-backed financial strength, accelerated revenue generation, and an investment structure designed for security and long-term success.
Evelution Energy Interview Chapter 14
Michael Gibson, USAdvisors, interviews Gil Michel-Garcia, EVP & General Counsel of EVelution Energy,
Transcript
Evelution Energy Interview Chapter 14 Transcript
Michael Gibson, Managing Director of US Advisors (USAdvisors.org) an independent Registered Investment Advisory Firm. Michael also owns and runs EB-5 Investments (eb5projects.com) and is an EB5 industry expert.
Navaid Alam, President & Chief Executive Officer
Gil Michel-Garcia, Executive Vice President, General Counsel, Treasurer & Secretary
Michael Gibson, speaking
So, the second most important question, after the job creation, which ensures that the green card conditions are met. Let's talk about the capital stack. Let's talk about how could the investors, if they decide to invest in this. We've shown the demand for the cobalt sulfate in the United States. Shortening the supply chain sounds like a great idea. How are you gonna finance this? What does the capital stack look like? I understand you, Gil you were saying, you have you've already secured external financing. So how did, for the viewers who may be curious to know? How much is EB5? How much is non EB5? How much are you contributing? How does that look?
Gil Michel-Garcia, speaking
So, one of the most important facets of creating a project or building a project that is in the national interest of the United States, is the fact that the government is very willing to step in and provide us with, I wouldn't say subsidized, but extremely attractive financing. On much longer terms that would otherwise be available. Let's say in a real estate deal. So for us the, there are two programs that we've been able to benefit from. One's called the Make More In America program. And that's the EXIM Bank, Make More In America program. And the make more, and the China Transformational Exports program of the EXIM Bank. Both of those programs, started by President Trump during his first administration, are focused at financing businesses that in the critical mineral, and other transformational areas like chips, that compete against China. And so, we've been able to secure an LOI from the EXIM Bank already, for 70% of the cost of constructing the facility, which is up to $200 million.
Michael Gibson, speaking
Right.
Gil Michel-Garcia, speaking
That's really attractive financing, it's 18 year term financing, construction financing. That is at very low rates, probably in the vicinity of 5%, 5.5%.
Michael Gibson, speaking
Which is unheard of in commercial. For all the commercial real estate developers, who are wondering how can they get a hold of that? I think the answer is build a manufacturing plant
Gil Michel-Garcia, speaking
That focuses on something that...
Michael Gibson, speaking
Exactly, forget about the multi family. That's not gonna work.
Gil Michel-Garcia, speaking
So, that allows us to raise a smaller component through EB5. And it also allows us to be able to be sure that we will have the financing to pay for the EB5, in the short term. Our construction period is quite short. Because we're not reinventing the wheel, we're building, if you like the, the, the lowest hanging fruit, of the most necessary facilities, in the United States. It's gonna take no more than two years to build. And we already have the, almost all of the off take in negotiations. I mean almost 80% of our off take is already spoken for in negotiations with off takers. So essentially as soon as we start operations the revenue is gonna be coming in quite quickly. And we only produce one thing.
Michael Gibson, speaking
Right.