Competitive export financing within ocean industries

Transcription

1 Competitive export financing within ocean industries Athens, 27 September 2016 Kaare Haahjem, Senior Vice President

2 Our mission is to provide competitive financial solutions to buyers of Norwegian Capital Goods and Services

3 We provide loans to the clients of Norwegian exporters LEGAL SET-UP: OWNERSHIP: FUNDING: CREDIT RISK: Limited liability company Norwegian Government State Treasury GIEK / Acceptable Created by a banks special law Total Lending Portfolio : NOK 75 bn ( USD 9 bn) 3

4 General terms REPAYMENT PERIOD LOAN AMOUNT NORWEGIAN OECD Generally: up to 8½ years Ships: 2 12 years Renewable energy: up to 18 years Capital goods: up to 85% of contract value Ship financing: up to 80% of contract value CONTENT Must account for at least 30% of the contract amount All loans must comply with the OECD Arrangement 4

5 Two attractive choices between interest rate alternatives CIRR MARKET LOAN CIRR loan (Commercial Interest Reference Rates) Fixed interest rate for the whole period The rate is adjusted by OECD on the 15th of every month Export Credit Norway quotes CIRR rate before contract award a free-of-charge fixed interest rate option All OECD currencies available CIRR qualified market loan Priced in accordance with prevailing market conditions Floating rate (IBOR) Most convertible currencies available Compliance with state aid regulations The interest rate choice may remain open until shortly before final drawdown of the loan. The borrower may compare the fixed CIRR rate to the market-based interest rate and choose the most attractive option. 5

6 CIRR Loans Fixed rates for the period in % pa. < 5 years 5½ 8½ years 9-12 years NOK 1.77% 1.77% 1.77% USD 1.85% 2.13% 2.40% EUR 0.36% 0.46% 0.63% 6

7 Market Loans Indicative price levels as of September 2016 for loans with 100% ECA guarantee Margin over IBOR in basis points (bps) Market binding period 3 years 5 years 7 years 12 years USD 3 Months Libor EUR 3 Months Euribor NOK 3 Months Nibor Floating rate as of (3 Months IBOR) USD: 0.85%, EUR: -0.32%, NOK: 1.07% 7

8 The free interest rate option The free interest rate option Interest rate (%) CIRR-quote Fixed date Market interest rate (fixed or floating) Application date Contract signed Delivery Repayment period Time 8

9 Three types of financing within the maritime industry NEW VESSELS PARTS OF SHIP RETROFIT Ships built in Norway for: Foreign owner. Norwegian owner within the offshore sector. Ships built at Norwegian owned yard outside Norway Shipyard in Country A =>owner/buyer in Country A. For Norwegian content in ships to be built by yards outside Norway Repayment period up to 12 years. Retrofit equipment is defined as capital goods considered as depreciable capital equipment Repayment up to 8½ years. Minimum 30% Norwegian content. Export Credit Norway can finance up to 80% of the shipbuilding contract. Export Credit Norway can finance up to 80% of the contract amount of Norwegian Ship equipment and Services. Export Credit Norway can finance up to 85% of the retrofit contract. Credit Frame Agreement. 9

10 Retrofit Financing Old Ladies

11 Retrofit financing with a Credit Frame Agreement TERMS AND CONDTITIONS Loan amount: up to 85% of contract value Interest rate: CIRR or Marked based interest rate (IBOR). CIRR-rate ( ) in 5y USD: 1.85 % pa. Repayment period: up to 8½ years depending on amount and type of investment Guarantor: GIEK and/or bank 11

12 Example Greek ship owner 28 vessels Retrofit equipment USD 1 mill. per vessel => Total Investment USD 28 mill. Credit frame Agreement USD 23.8 mill. Availability: Till last vessel of the fleet has been to «docking» in When the last docking has been made, Export Credit Norway will consolidate all purchases and installations into one separate loan. Year Docking of ship - Schedule Number Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Loan amount Disburse ment m Aug m Dec m Sep m May m 12

13 Additional information By entering the credit frame agreement a fixed interest rate is locked in for the duration of the retrofit programme Additional costs related to the financing; guarantee provision from GIEK or commercial bank, legal costs from the documentation of the loan, administrational fees from the banks Loans are disbursed post-delivery Maturity up to 8.5 years from disbursement Examples of collatteral from GIEK and / or banks: Corporate guarantee from ship owner (the strongest ship owners) Collateral in the ship 13

14 14

15 OCEAN INDUSTRIES OLAV TORE BREILID STIG GJETHAMMER KAARE HAAHJEM LAILA JOHNSEN TELLEF TELLEFSEN Hieronymus Heyerdahls gate 1 P.O. Box 1315 Vika, 0112 Oslo Norway OIL & GAS ANNA MUSIEJ AANENSEN ama@eksportkreditt.no OLAV TORE BREILID otb@eksportkreditt.no KRISTIAN FLATEN krf@eksportkreditt.no 15

16 Eksportkreditt.no Tel: (+47) Hieronymus Heyerdahls gate 1 P.O. Box 1315 Vika, 0112 Oslo, Norway Follow us: