Georg Kervel, GIEKIvar Slengesol, Export Credit NorwayNorway Health Tech14 May 2019

Scale Your Business with

Competitive Financing Solutions

Loans from Export Credit Norway

Guarantees from GIEK

STABLE, LONG-TERM FINANCING

RISK CAPACITY & FUNDING FROM THE NORWEGIAN GOVERNMENT

COMPETITIVEINTEREST RATES

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Export Credit Norway and GIEK offer competitive financing to buyers of Norwegian capital goods and services

The Norwegian export financing system

The Norwegian Parliament (Stortinget)

Ministry of Trade, Industry and Fisheries (NFD)

Guarantees on behalf of the Norwegian governmentto Export Credit Norway, banks and others

Medium to long-term loans guaranteed by banks/financing institutions/GIEK

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BANK*/GIEK

Exporter(s)

GUARANTEES

FUNDING

*Loans from Export Credit Norway must be guaranteed by the Norwegian Guarantee Institute for Export Credits (GIEK) and/or

one or more acceptable banks/financial institutions. The guarantors will issue loan guarantees in favour of Export Credit Norway

after they have conducted a favourable credit assessment of the project and the borrower

The parties involved in a transaction

TENDER / CONTRACT NEGOTIATIONS

Exporter or buyer must apply for export

financing before Norwegian contract award

BUYER/

BORROWER

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FOR EXPORTERS:Securing your next order

• Offer your customers financing directly linked to your prospective export contract

• Reduce your financing risk. You are not part to the loan transaction and will receive full payment on delivery.

• Receive free-of-charge assistance and advice on financing solutions.

• Generate repeat business based on the availability of Norwegian export financing.

• Grow you business by obtaining credit for up to 10 years.

• Choose between competitively-priced fixed and variable interest rates.

• Receive financing for up to 85% of the export credit value.

• Preserve your existing bank lines for local financing requirements, such as working capital.

FOR BUYERS:Financing your project

General conditions according to the OECD Arrangement for export credits

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➢ Financing for up to 85 % of the contract value. GIEK may guarantee for up to 90 % of the loan amount.

➢ Norwegian content should generally account for at least 30 % of the contract value.

➢ Local content (sub-supplies under the export contract from the project country) limited to 30% of the export contract value.

➢ Repayment generally up to 8.5 years (typically 5 years for loans of less than USD 5 million). 10 years in developing countries.

➢ Credit risk of buyer must be acceptable

➢ Exporter or potential buyer must apply to Export Credit Norway before contract award.

Attractive financing costs:Fixed CIRR (Commercial Interest Reference Rate), or market-based interest (floating)

Pre-contract fixed CIRR RATES 15.05. -14.06.2019

< 5 y 5.5 – 8.5 y

EUR 0.64 0.80

USD 3.51 3.53

Other costs to be covered by the borrower:

➢ Transactions cost

➢ Local legal opinion

➢ Up-front risk premium, payable to GIEK/Bank

Standard down payment terms:

➢ Minimum 2 years; 5 years is standard, maximum 10 years

➢ First down payment 6 months after starting point of credit

➢ Quarterly or Semi annual down payment

Credit assessment according to market practice

▪ Creditworthiness of the debtor

▪ Financial robustness of the project

▪ Collateral

▪ Financial covenants and reporting requirement

▪ Risk sharing with a commercial bank, exporter (small transactions) or other risk

takers

▪ Non-recourse project finance: technical, completion, resource,

off-take, O&M, legal, insurance, etc.

Other pre-requisites forming an integral part in the risk assessment

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▪ Anti corruption and compliance▪ Environmental standards ▪ Social responsibility and human rights

Six steps towards export financing

Exporter or buyer submits loan application before contract

award

GIEK (and or bank) conduct

credit assessment

Separate credit decisions in GIEK and

Export Credit Norway

Common term sheet

Export Credit Norway

negotiates loan documentation

with buyer

Export Credit Norway

disburses the loan post-delivery

Export Credit Norway

administers the loan

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Export and buyer sign export contract

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GIEK offers several guarantee solutions

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Buyer creditguarantee

– facilitates financing to buyers of Norwegian export. The loan

can be from Norwegian or foreign banks or Export Credit

Norway.

Investmentguarantee

– facilitates Norwegian investment in countries with

high political risk. The guarantee may cover either

equity or loans.

Buyer creditguarantee

– for export related investments in Norway

–provides a guarantee to a bank that finances a company’s investment in Norway. The investment must directly or

indirectly lead to export.

Contractguarantee

– protects the exporter from suffering losses during the

production period as a result of contract non-fulfilment by a

foreign buyer.

Bondguarantee

– secures the foreign buyer against loss if the Norwegian

exporter does not fulfil its offer, if the advanced payment is lost, or if the exporter does not carry

out delivery.

Otherguarantees

Letter of credit Power purchase

TenderBuilding loan

Production loan guarantee

– can be provided to Norwegian exporters that

need financing of production costs linked to a specific export

contract.

Supplier creditguarantee

– ensures that the exporter receives payment for sales on

credit to a foreign buyer.

1 Development 2 Marketing 3 Sales 4 Security

SIVA

The Research Council of

Norway

Embassies

Innovation Norway

GIEK Kredittforsikring AS

Support for research, development,

commercialisation

Towards buyers, banks and

others

Assist companies with financing

and risk reduction

Export Credit Norway AS

GIEK (Garantiinstituttet for eksportkreditt)

Avoid loss before / after delivery

for exporter, foreign buyer or

their banks

Norwegian instruments for innovation and development

Get your project off the ground –with Norwegian supplies AND financing

Contact us and apply here:

www.eksportkreditt.no

www.giek.no