Transcript Eksportkreditt PowerPoint Presentation

Competitive Financing from Norway
Presentation at Oslo Militære Samfund, 31.5.2013
Indo-Norwegian Joint Working Group Maritime
Lars Hasle
Eksportkreditt Norge AS
Export Credit Norway in brief
• Offers competitive long-term financing to large and
small companies in Norway and abroad for purchases of
capital goods and services from Norwegian exporters
• Stable, long-term source of financing
• Funding from the Norwegian government
• Manages the whole lending process, including guidance
to export credit financing, loan application processing,
documentation, disbursement and loan administration
Historic perspective: Norwegian export credit financing
- Supporting the Norwegian Export industry for decades
2012
2013
On Nov 18, the government
announced that it would
assume responsibility from
Eksportfinans for the
offering of governmentsupported loans. A new
state-owned entity will be
set up for this purpose.
Export Credit Norway
120
fully operational as of
July 2012 providing longterm financing with
funding from the
Norwegian government.
29 experienced
employees recruited
from Eksportfinans.
100
80
Export-related loans (2001-10)
BNOK
60
40
20
Solid history of growth
2010
2009
2008
2007
2006
2005
2004
2003
-
2002
Eksportfinans ASA has
provided governmentsupported loans on
behalf of the Ministry of
Trade & Industry to the
Norwegian export sector
from 1978 to 2011.
2011
2001
1978
Export Credit Norway holds a loan portfolio of
MUSD 5 135 as of Dec 31, 2012
Industry
Maritime sector – ships
Maritime sector – ship equipment
Equipment for the oil and gas industry
Renewable energy /environmental tech.
Other industries
Total
•
Balance MUSD
2 616
50
2 445
21
2
5 135
By year end 2013, total lending is estimated
to US$ 10 billion
Number of applications year-end 2012
– an indication of activity level:
Industry
Number of applications
Maritime sector – ships
88
Maritime sector – ship equipment
62
Equipment for the oil and gas industry
31
Renewable energy /environmental tech.
71
Other industries
50
Total
302
Strategic focus (2012-2015):
Competitive, accessible and efficient export
financing, with increased focus on:
-Small and medium-sized enterprises
-New knowledge and technology
Exportfinancing to India over the years
•
•
•
•
•
•
•
•
Vessels to ONGC
Computers to ECIL, Hyderabad
Electronic landing systems, NAA
Hydropower projects
Telecomtechnology
Shipequipment
Vessel Traffic Management System
Cinevator to Bollywood
Lending portfolio
Offshore related activities account for the majority of the lending volume
Loan portfolio: industrial sector as of 31.12 2012
Other 2 %
Construction ships
Other offshore vessels
Anchor
handling tug
supply vessels
(AHTSs)
2%
2%
Equipment for
drilling vessels
9 %9 %
25 %
25
% 7 094
MNOK
8 8%%
28 582
MNOK
Number of loans within different segments
25 %
26 %
2020
%%
MNOK 5 790
Platform supply
vessels (PSVs)
6 6%%
Other types of ships
Equipment for semisubmersible platforms
3%
FPSO equipment
Forsyning (PSV)
Utstyr drillskip
Ankerhåndtering (AHTS)
Utstyr semi
Andre skipstyper
Konstruksjon
Annet offshorefartøy
Annen industri
Utstyr ferge
Vind
Utstyr andre skipstyper
Ferge
Utstyr FPSO
10
6
1
0
5
10
15
20
25
30
35
Financing from Export Credit Norway
How does it work?
• All loans from Export Credit Norway must be
secured by guarantee(s) from The Norwegian
Guarantee Institute for Export Credits (GIEK)
and/or acceptable bank(s)
• GIEK is a vital partner for Export Credit Norway.
Secures political and commercial risks on loans
• Export Credit Norway co-operates with a wide
range of both Norwegian and international banks
The exporter sells the capital goods
and/or services to the foreign buyer
Norwegian
exporter
Foreign buyer
Export Credit Norway:
funding and arranging the
financing
Export Credit
Norway
The guarantee agreement is
between the foreign buyer and
guarantor(s)
Guarantor(s)
GIEK/Bank
The loan agreement is
between the foreign
buyer and Export
Credit Norway
An attractive choice between two interest rate alternatives
The interest rate
choice may remain
open until shortly
before final
drawdown of the
loan. At that point,
the borrower may
compare the fixed
CIRR rate to the
marketbased interest
rate and opt for the
more attractive of the
two
•
CIRR loan
(Commercial Interest
Reference Rates)
CIRR qualified
market loan
•
The rate is adjusted by OECD on the 15th of every month
(www.oecd.org)
Export Credit Norway quotes CIRR rate before contract
award – a free-of-charge fixed interest rate option
All OECD currencies available
•
Priced in accordance with prevailing market conditions
•
Most convertible currencies available
•
Compliance with state aid regulations
•
9
An attractive interest rate option: CIRR rates currently at historically
Pre-contract CIRR RATES 15.05 -14.06.2013
low levels
<5y
5.5 – 8.5 y
9-12 y
USD
1.54
1.91
2.35
EUR
1.39
1.78
2.22
GBP
1.51
1.93
2.39
NOK
2.53
2.53
2.53
10
All loans must comply with the OECD
Arrangement on Officially Supported Export Credits
•
Export Credit Norway offers financing for up to 85 % of the contract value
•
Norwegian content must account for at least 30 % of the contract amount*
•
Deliveries from subcontractors in the project country (“local content”)
cannot exceed 30 % of the sum of Norwegian and third country content
•
The repayment period is generally up to 8.5 years
(for ships up to 12 years, and for renewable energy projects up to 18 years)
•
The Norwegian exporter or prospective foreign borrower must apply for
export financing before a legally valid and binding contract is entered into
•
All loans must be secured by guarantee(s) from The Norwegian Guarantee
Institute for Export Credits (GIEK) and/or acceptable financial institutions
*Deliveries from companies based in Norway or companies abroad under Norwegian majority
control generally qualify as Norwegian content
The application process
1
Exporter or buyer
informs Export
Credit Norway
about the project
and applies for
financing before a
legally valid and
binding contract is
entered into
2
Exporter and
buyer execute
commercial
contract
4
3
Exporter or buyer
applies for risk
coverage from
GIEK and / or
acceptable bank(s)
GIEK and/or
commercial bank
issue loan
guarantee(s)
5
Export Credit
Norway executes
loan agreement
with buyer and
disburses the loan
What should the application include?
•
Name of buyer, borrower and supplier
•
Brief description of project, e.g. type of delivery and time of
delivery, environmental issues
•
Estimated contract value
•
Estimated Norwegian content in the contract
•
Type of loan, amount, currencies, tenor
•
Guarantor information (if available)
Competitive financing from Norway:
• Attractive pricing
• Access to long-term financing in all market conditions
• Flexibility within the framework
• High capacity for more projects moving forward
• Export Credit Norway must receive the loan application
before the export contract has been signed
Please contact us
Export Credit Norway AS
Hieronymus Heyerdahls gate 1, entrance from Otto Sverdrups gate
P.O. Box 1315 Vika, 0112 Oslo, Norway.
Tel: (+47) 22 31 35 00
www.eksportkreditt.no