Competitive financing from Norway Vilde Grnn Larsen, SVP Energy and - - PowerPoint PPT Presentation
Competitive financing from Norway Vilde Grnn Larsen, SVP Energy and Industry Ghana-Norway Business Forum Oslo, 26 November 2019 The Norwegian Export Credit Agency (ECA) The Norwegian Parliament (Stortinget) Ministry of Trade, Industry
Vilde Grønn Larsen, SVP Energy and Industry
Ghana-Norway Business Forum Oslo, 26 November 2019
Guarantees on behalf of the Norwegian government to Export Credit Norway, banks and others. Financing on behalf of the Norwegian government: Loans guaranteed by banks/financing institutions/GIEK
STABLE, LONG-TERM FINANCING FINANCING FROM THE NORWEGIAN STATE COMPETITIVE TERMS FINANCING AVAILABLE TO ALL INDUSTRIES
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(«on-lending»)
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▪ Buyer: Woodside, Australia ▪ Norwegian supplier: OneSubsea Processing
▪ Loan Amount: USD 100 millions ▪ Financing structure: Loan from Export Credit Norway covered by guarantees from GIEK (90%) and DNB (10%)
▪ Buyer: Solstad Offshore (for work in Brazil and West Africa) ▪ Norwegian supplier: Vard Brattvaag shipyard
▪ Financing structure: Partly financed by loan from Export Credit Norway and guarantee from GIEK, in collaboration with commercial banks.
▪ Buyer: Camwater / the Cameroonian State ▪ Norwegian supplier: Inrigo
▪ Loan Amount: EUR 57.5 millions ▪ Financing structure: Loan from Export Credit Norway covered by guarantee from GIEK
▪ Buyer: «Agua Fria» Solar Plant, Honduras ▪ Norwegian supplier: Scatec Solar
▪ Loan Amount: USD 51.3 millions ▪ Financing structure: Export Credit Norway and GIEK participated in the financing based on the Norwegian content in the project.
▪ Local subsidiary: GC Rieber Compact South Africa ▪ Mother company: GC Rieber Compact Norway ▪ Investment: A new production line to expand its local production of ready-to-use therapeutic foods. ▪ Loan Amount: EUR 2.2 millions ▪ Financing structure: Loan from Export Credit Norway guaranteed by GIEK and GC Rieber Compact.
REPAYMENT PERIOD
▪ Generally: Up to 10 yrs ▪ Ships: Up to 12 yrs ▪ Project finance: Up to 14 yrs ▪ Renewable energy: Up to 18 yrs
LOAN AMOUNT
▪ Capital goods: Up to 85% of contract value. ▪ Ship financing: Up to 80% of contract value. ▪ Minimum 30% of the contract. ▪ Among the more flexible ECAs. ▪ the OECD Arrangement. ▪ Policy for anti- corruption. ▪ Policy for Environmental and Social risk.
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NORWEGIAN CONTENT MUST COMPLY WITH:
Local content in Ghana included in the contract must be limited to 30% of the contract value.
The interest rate choice may remain
drawdown of the loan. The borrower may compare the fixed CIRR rate to the market-based interest rate and choose the most attractive option.
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▪ On top of the interest rate for the loan, GIEK and/or the guarantor(s) will add an additional percentage rate for covering the risk, a so-called «risk premium». ▪ The risk premium varies in each transaction depending on the perceived risk in the transaction. ▪ The perceived risk depends on: – The borrowers ability to repay the loan – The country – The industry – Environmental & social impacts – Other case-specific factors ▪ Local legal fees, i.e. to ensure the transaction and loan agreement comply with local laws and regulations, have to be covered by the borrower. ▪ The financial institutions involved in the transaction will usually charge a fee for arranging and managing the loan.
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