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MARITIME INDUSTRY AND COMPETITIVE FINANCE
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Ålesund, December 3, 2015Stig Gjethammer, Senior Vice President
Export Credit provides loans to the clients of Norwegian exporters
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Our mission: To provide competitive financial solutions to buyers of Norwegian Capital Goods and Services.
Legal set-up:Limited liability companyCreated by a special law
Ownership: Norwegian Government
Funding: State Treasury
Credit risk: GIEK/ECAs/Acceptable banks
Loan products:
Total LendingPortfolio:
Contract /project financing, post delivery
NOK 75bn (USD 9bn)
Financing of ship, “part of ships” or retrofit from Norwegian exporter
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Norwegian exporter
Russian buyer/owner
Contract for thedelivery
Export Credit Norway
Loan agreement
GIEK/ECAs Bank
Credit Insurance(60-90%)
Payment guarantee(10-40%) Guarantee
agreement
Kun tittel
Ship
• 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 B
• Export Credit Norway can finance up to 80% of the shipbuilding contract
«Parts of Ships»
• For ships to be built by yards outside Norway
• Repayment period – up to 12 years
• Export Credit Norway can finance up to 80% of the contract amount of Norwegian Ship equipment and Services
Retrofit
• Retrofit equipment is defined as capital goods considered as depreciable capital equipment
• Repayment up to 8 ½ years.
• Minimum 30% Norwegian content.
• Export Credit Norway can finance up to 85% of the retrofit contract
• Credit Frame Agreement
Three types of financing within the Maritime industry
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Ship financing – long term financing to the shipowner
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Financing of up to maximum 80% of «ready for sea cost». However, assume at least 30 % equity in today’s market.
Guarantee from GIEK (see: www.giek.no) and / or commercial bank(s). Minimum credit rating BBB.
The loan will be disbursed to the yard at delivery of the vessel - i.e. post-delivery financing.
Repayment period 12 years from delivery of the vessel, equal semi-annual instalments.
Loan documentation and requirements based on standards from the bank market.
Skipsteknisk – ST 367 Arc-designRolls-Royce – NVC 374-design
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Financing of «part-of-ships»• Export Credit Norway can offer financing of a “package” of Norwegian equipment and services
representing a share of the vessel’s contract amount. We offer financing of up to 80 % of the total package of Norwegian equipment and services
• If there is a series of vessels, Export Credit Norway can provide financing for applicable amount on each vessel, or aggregate all Norwegian content to finance up to 80% of the last vessel, or a combination thereof
Example: - Total contract price each vessel: NOK 400 million
- Total Norwegian equipment and services per vessel: NOK 100 million
- Export Credit Norway can finance up to 80 % of last vessel, or a combination thereof
80 80 80 80
Min. 20 % equityLoan amount: NOK 320 million
Retrofit financing with a Credit Frame Agreement
TERMS AND CONTITIONS:Loan amount: up to 85% of contract valueInterest rate: CIRR or Marked based interest rate (IBOR). CIRR-rate (15.11. – 14.12.2015) in 5y USD: 1.93% pa.Repayment period: up to 8½ years – depending on amount and type of investmentGuarantor: GIEK and/or bank
EXAMPLE:• 50 vessels• Retrofit equipment USD 1 mill. per vessel => Total Investment USD 50 mill.• Credit frame Agreement USD 42,5 mill.• Availability: Till last vessel of the fleet has been to «docking» in 2020.
When the last docking each year has been made, Export Credit Norway will consolidate all purchases and installations for that year into one separate loan.
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Year
Docking of ship - ScheduleNumber
Loan-amount
Disbursement of Loan under the Credit Frame AgreementJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2016 2 3 6 2 1 14 11,9m 2016-Disbursement in Aug.
2017 5 3 3 1 12 10,2m 2017-Disbursement in Oct.
2018 2 4 4 1 11 9,35m 2018-Disbursement in Dec.
2019 4 3 2 1 10 8,5m 2019-Disbursement in Sep.
2020 1 1 1 3 2,55m 2020-Disbursement in May.
50 42,5m
Two attractive choices between interest rate alternatives
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CIRR loan (Commercial Interest Reference Rates)
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
CIRR
MARKET LOAN
The borrower may compare the fixed CIRR rate to the market-based interest rate and choose the most attractive option.
The interest rate choice may remain open until shortly before final drawdown of the loan.
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1010
An attractive interest rate option – the CIRR rate
0,00
1,00
2,00
3,00
4,00
5,00
6,00
7,00
14.Jan.08 14.Jan.09 14.Jan.10 14.Jan.11 14.Jan.12 14.Jan.13 14.Jan.14 14.Jan.15
NOK
USD
EUR
CIRR development 2008 - 201512 year tenor CIRR rates
Pre-contract CIRR RATES 15.11. - 14.12.2015
< 5 y 5.5 – 8.5 y 9-12 y
NOK 2.24 2.24 2.24
USD 2.13 2.59 2.96
EUR 0.97 1.19 1.47
GBP 1.99 2.34 2.66
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Floating ratemarket loans
Examples of margins above IBOR as of November 2015 based on 100% guarantee from GIEK
Margin over IBOR in basis point (bp)
Margin binding period
3 years 5 years 7 years 12 years
NOK – 3 M Nibor 55 63 72 82
USD – 3 M Libor 65 73 78 94
EUR – 3 M Euribor 46 55 61 83
GBP – 3 M Euribor 64 72 77 92
The application and the loan process
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.
1Exporter and buyer
execute commercial
contact.
2Exporter or buyer
applies for risk
coverage from GIEK
and/or acceptable
financial
institution(s).
3GIEK and/or
commercial bank
issue loan
guarantee(s).
4Export Credit
Norway executes
loan agreement
with buyer and
disburses the loan.
5What should the application include?• Name of buyer,
borrower and supplier• Type of delivery and
time of delivery• Estimated contract
value• Loan amount,
currencies, tenor
The loan application must be sent before commercial contract is signed
Exporter or buyer informs Export Credit Norway about the project and applies for financing before a legally valid and binding contract is entered into
Contact card
Contacts
OLAV E. RYGG
Director of Lending
Ocean Industries
(+47) 995 85 074
STIG GJETHAMMER
Maritime Industries (Møre)
(+47) 975 43 444
ANNA MUSIEJ AANENSEN
Oil & Gas projects
(+47) 926 15 636
LARS BØRRE HASLE
Industry and CleanTechnologies
(+47) 924 06 329
TELLEF TELLEFSEN
Offshore Shipping
(+47) 920 64 968
KAARE HAAHJEM
Shipping and Maritime
(+47) 415 54 431
LAILA JOHNSEN
Merchant Shipping
(+47) 920 48 936
DAGNY ASTRUP
Shipping and Maritime Equipment – Chile & Peru
(+47) 926 10 725
IVAR SLENGESOL
Director of Lending
Industry and CleanTechnologies
(+47) 991 14 110
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JOSÉ REYES MARTINEZIndustry and CleanTechnologies(+47) 907 94 [email protected]
OLAV TORE BREILIDMerchant Shipping(+47) 932 53 761 [email protected]
Tittelside - illustrasjon - blå
OCEAN INDUSTRIES:
DAGNY ASTRUP +47 9261 0725 [email protected]
OLAV TORE BREILID +47 9325 3761 [email protected]
STIG GJETHAMMER +47 9754 3444 [email protected]
KAARE HAAHJEM +47 4155 4431 [email protected]
LAILA JOHNSEN +47 9204 8936 [email protected]
TELLEF TELLEFSEN +47 9206 4968 [email protected]
OIL & GAS
ANNA MUSIEJ AANENSEN +47 9261 5636 [email protected]
Follow us:
Hieronymus Heyerdahls gate 1P.O. Box 1315 Vika, 0112 Oslo, Norway.
